Tax incidence may be defined as the

A) average tax rate of a given group of taxpayers.
B) degree to which a tax falls on a particular person or group.
C) tax burden, or taxes as a percent of GDP.
D) number and range of goods and services that are taxed.

Tax incidence refers to the analysis of the effect of a particular tax on the distribution of economic welfare. It essentially looks at who ultimately bears the burden of a tax, which can differ from the entity that initially pays the tax. This is why option B is correct, as it directly addresses the concept of how a tax impacts a specific person or group, which is the essence of tax incidence.