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.

Question

Quizplus · Accepted Answer

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.

When a Tax Is Levied on a Good, the Buyers