Asked by khalid almaadeed on May 10, 2024
Verified
Whether a tax is levied on sellers or buyers, buyers and sellers usually share the burden of taxes.
Tax Levied
A core financial duty or diversely defined levy enacted on a taxpayer by a government branch to facilitate the financing of government and the wide array of public sector spending.
- Perceive the concept of tax incidence and the method by which tax burdens are allocated between consumers and merchants.
Verified Answer
AK
Alexander KnightMay 15, 2024
Final Answer :
True
Explanation :
The economic incidence of a tax, meaning who actually bears the burden, does not depend on who the tax is formally levied on. Both buyers and sellers will typically share the burden through changes in market prices and quantities.
Learning Objectives
- Perceive the concept of tax incidence and the method by which tax burdens are allocated between consumers and merchants.