Asked by Justice Kay-Lease on May 21, 2024
Verified
Who bears the majority of a tax burden depends on whether the tax is placed on the buyers or the sellers.
Tax Burden
The tax burden refers to the total amount of taxes that individuals, businesses, or other entities must pay, expressed as a percentage of income or GDP.
- Absorb the idea of tax incidence and the division of tax responsibility amongst buyers and sellers.
- Perceive the influence of demand and supply elasticities on the apportionment of tax liabilities.
Verified Answer
KC
Kelli CarrollMay 25, 2024
Final Answer :
False
Explanation :
Who bears the majority of a tax burden depends on the price elasticity of demand and supply for the product, not on whether the tax is placed on buyers or sellers.
Learning Objectives
- Absorb the idea of tax incidence and the division of tax responsibility amongst buyers and sellers.
- Perceive the influence of demand and supply elasticities on the apportionment of tax liabilities.