Asked by
Grace Gourmet
on Nov 26, 2024Verified
When an excise tax or sales tax is imposed on a product, the sellers are always able to shift the burden of the tax on to the buyers.
Excise Tax
A tax levied on specific goods or activities, such as alcohol, tobacco, and gasoline, often intended to discourage their use or to raise revenue.
Sales Tax
A tax imposed by governments on the sale of goods and services, adding on to the purchase price paid by consumers.
- Comprehend the impact of demand and supply elasticity on tax incidence.
Verified Answer
MF
Learning Objectives
- Comprehend the impact of demand and supply elasticity on tax incidence.