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How do buyers and sellers share the burden when a tax is levied on a good?
When a tax is imposed on a good, buyers and sellers typically share the burden by adjusting the price of the good. Sellers may increase the price to cover the tax, which can lead to higher prices for buyers. Buyers may also end up paying more for the good as a result of the tax. Ultimately, the burden of the tax is shared between buyers and sellers through changes in the price of the good.
What determines how the burden of a tax is divided between buyers and sellers?
The burden of tax is divided between buyers and sellers by the forces of supply and demand.
What is the difference between a tax paid by buyers and tax paid by sellers?
the only difference between tax paid by buyers and tax paid by sellers is who sends the money to the government. Manga economics student
What determines how the burden of tax is divided between buyers and seller?
The burden of tax is divided between buyers and sellers by the forces of supply and demand.
In general the incidence of an excise tax is shared between buyers and sellers True or False?
yes
How does elasticity effect the tax incidence?
Tax incidence (the distribution of the tax burden among the buyers and sellers in a market) depends on the elasticity of demand and supply because elasticity measures the buyer and seller's willingness to leave the market when the prices of goods change. The more elastic demand/supply is, the more buyers/sellers will leave the market when the prices rise.Therefore, the tax burden falls more on the side of the market with the smaller elasticity, because a small elasticity means that more buyers/sellers remain in the market when the prices rise due to their being fewer available alternatives.
What is'Tax Incidence'?
Tax incidence refers to the distribution of a tax burden between buyers and sellers in a market. It shows who ultimately ends up bearing the economic cost of a tax, whether it is passed on to consumers in the form of higher prices, or to producers in the form of lower revenue or profits.
How does a tax on a good affect the price paid by buyers the price received by sellers and the quantity sold?
Quantitiy is not a factor, as the buyer will pass along the increased cost due to the tax.
How does a tax a good affect the price paid by buyers the price received by sellers and the quantity sold?
it will totally depand upon elasticity of supply and demand if it is elastic then iten the tax paid will be by both however if it is inelastic then burden of tax will be laid upon buyer
Do first time house buyers still get a tax credit from the government on their federal income tax return?
First time house buyers do still get a tax credit from the government on their federal income tax return. This is a very nice tax credit that helps thousands of new home buyers every year.
Is the tax burden of sin taxes on tobacco products shared equally between consumers and -producers?
no,buyers pay more
Difference between Excise tax and sales tax?
Sales tax is what consumers normally pay for, or are charged for a good/ service; and excise tax is the "hidden" tax that the producers or sellers pay for. Sales tax is listed separately. Sometimes producers and sellers include the value of the excise tax within the goods or service as an " indirect tax". So that means, theoretically, sometimes consumers are being taxed twice for the price. You can find more info about sales tax and excise tax at the B.L.S. or the Federal Bureau of Labor and Stats...
