In general taxes on goods and servicesA) are borne mainly by consumers.B) are borne mainly by sellers.C) are borne equally by consumers and sellers.D) may be paid mainly or entirely by buyers or it may be paid mainly or entirely by sellers,or may be paid equally by buyers and sellers.

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Kiley Goodie · Accepted Answer

Final Answer : D, Explanation :  The incidence of taxes on goods and services depends on the relative elasticity of demand and supply. If demand is more elastic than supply, sellers bear a larger share of the tax burden. If supply is more elastic than demand, consumers bear a larger share. Therefore, the tax burden can vary significantly, being borne mainly by buyers, mainly by sellers, or shared between both.

In general taxes on goods and services

A) are borne mainly by consumers.
B) are borne mainly by sellers.
C) are borne equally by consumers and sellers.
D) may be paid mainly or entirely by buyers or it may be paid mainly or entirely by sellers,or may be paid equally by buyers and sellers.

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