What is the incidence of a tax?

Question 3 options:

The sum of a tax and a product’s price


The final burden of a tax


The levying of a tax on consumers


The ratio of a tax to a product’s price

Respuesta :

A tax incidence is an economic term for the division of a tax burden between buyers and sellers. Tax incidence is related to the price elasticity of supply and demand. When supply is more elastic than demand, the tax burden falls on the buyers.

Answer:

The final burden of a tax

Explanation:

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