Msmsms11idn
Answered

IDNLearn.com: Where your questions meet expert answers and community support. Our community is ready to provide in-depth answers and practical solutions to any questions you may have.

The incidence of a tax is determined by:

A. Which side of the market is less sensitive to a change in price
B. Who pays the tax out of pocket
C. Whether the supply curve or demand curve shifts as a result of the tax
D. How much tax revenue it generates
E. The side of the market (buyers or sellers) the government taxes

Sagot :

GinnyAnsweridn

Final answer:

Tax Incidence explains how taxes are divided between buyers and sellers based on demand and supply elasticity.


Explanation:

Tax Incidence describes how the burden of a tax is shared between buyer and seller. The incidence of a tax is determined by the price elasticity of demand and supply. If demand is inelastic relative to supply, the tax burden falls more on the buyer, whereas if demand is elastic relative to supply, the burden falls more on the seller.


Learn more about Tax Incidence here:

https://brainly.com/question/41539984


Thank you for participating in our discussion. We value every contribution. Keep sharing knowledge and helping others find the answers they need. Let's create a dynamic and informative learning environment together. Thank you for choosing IDNLearn.com. We’re here to provide reliable answers, so please visit us again for more solutions.