Asked by Dalton Regier on Jun 11, 2024
Verified
When a tax is levied on a good, the buyers and sellers of the good share the burden,
A) provided the tax is levied on the sellers.
B) provided the tax is levied on the buyers.
C) provided a portion of the tax is levied on the buyers, with the remaining portion levied on the sellers.
D) regardless of how the tax is levied.
Tax Levied
The process of imposing a tax by a governing authority on the citizens and organizations.
Buyers And Sellers
Participants in a market where buyers exchange money for goods or services from sellers, creating economic transactions.
- Explore the ramifications of taxation on the cost fluctuations experienced by buyers and sellers.
Verified Answer
AM
Aliyah MartinezJun 16, 2024
Final Answer :
D
Explanation :
The burden of a tax on a good is shared between buyers and sellers regardless of whether the tax is levied on the buyers, the sellers, or split between both. This is because the market adjusts the price and quantity sold in response to the tax, affecting both parties.
Learning Objectives
- Explore the ramifications of taxation on the cost fluctuations experienced by buyers and sellers.