Question

Tax incidence is the division of the burden of tax between​ _____. A. ​buyers, sellers, and the government B. sellers and the government C. workers and employers D. buyers and sellers

Answer 1

The correct answer is letter "D": buyers and sellers.

Step-by-step explanation:

Tax incidence is a situation in which sellers and buyers share the tax burden. In front of new levies, tax incidence determines if the burden will be addressed to producers or consumers or if it will be charged to the population at different levels.

Tax incidence is closely related to the elasticity of demand and supply since the higher the elasticity of demand of a given product compared to the elasticity of supply, will address the levies to producers and vice versa.