2182EconomicsMedium
Which of the following statements about the burden of a tax is correct?
AThe 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
BThe 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 unfavorable to them.
CThe distribution of the burden of a tax is determined by the relative elasticities of determined by legislation.
DThe burden of a tax falls on the side of the market (buyers or sellers) from which it is collected
Correct answer
C. The distribution of the burden of a tax is determined by the relative elasticities of determined by legislation.
Explanation
The correct answer is The distribution of the burden of a tax is determined by the relative elasticities of determined by legislation..