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1. |
Which of the following statements about the burden of a tax is correct ? |
A. | The tax burden generated from a tax placed on a good consumer perceive to be a necessity will fall most heavily on the sellers of the good |
B. | The burden of a tax falls on the side of the market (buyers or sellers) from which it is collected |
C. | The distribution of the burden of a tax is determined by the relative elasticities of determined by legislation. |
D. | The tax burden falls most heavily on the side of the market (buyers and sellers) that is most willing to leave the market when price movements are unf |
Answer» D. The tax burden falls most heavily on the side of the market (buyers and sellers) that is most willing to leave the market when price movements are unf | |