Asked by Brandon Trejo on Jul 08, 2024
Verified
The tax incidence depends on whether the tax is levied on buyers or sellers.
Tax Incidence
Describes how the burden of a tax is distributed between buyers and sellers, depending on the relative elasticities of supply and demand.
Levied On
Imposed or applied, typically in the context of taxes or duties on goods, services, or income.
- Master the concept of tax incidence and the way tax responsibilities are split between buyers and sellers.
Verified Answer
DP
Deanna PerryJul 09, 2024
Final Answer :
False
Explanation :
The tax incidence, or the distribution of tax burden between buyers and sellers, depends on the relative elasticities of supply and demand, not on who the tax is legally levied on.
Learning Objectives
- Master the concept of tax incidence and the way tax responsibilities are split between buyers and sellers.