An excise tax is levied on suppliers.The incidence of the tax:

A) is typically on the consumer more than the producer.
B) is typically on the producer more than the consumer.
C) is typically split equally between the producer and the consumer.
D) cannot be determined without more information.

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Wilma Bryant · Accepted Answer

Final Answer : D, Explanation :  The incidence of a tax depends on the relative elasticities of supply and demand. Without knowing these elasticities, we cannot determine how the tax burden is shared between producers and consumers.

An excise tax is levied on suppliers.The incidence of the tax:

A) is typically on the consumer more than the producer.
B) is typically on the producer more than the consumer.
C) is typically split equally between the producer and the consumer.
D) cannot be determined without more information.

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Learning Objectives

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An excise tax is levied on suppliers.The incidence of the tax:A) is typically on the consumer more than the producer.B) is typically on the producer more than the consumer.C) is typically split equally between the producer and the consumer.D) cannot be determined without more information.

Definitions

Learning Objectives

Learning Objectives

Related questions

An excise tax is levied on suppliers.The incidence of the tax:

A) is typically on the consumer more than the producer.
B) is typically on the producer more than the consumer.
C) is typically split equally between the producer and the consumer.
D) cannot be determined without more information.