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Merna Hirmiz
on Oct 14, 2024

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Supply and demand theory shows us that the burden of a sales tax is shared equally by suppliers and demanders whether the tax is collected from the sellers or collected from the buyers.

Supply And Demand Theory

A basic economic principle that describes how the quantity of goods provided by producers and the quantity desired by consumers affect the market price and allocation of resources.

Sales Tax

A tax imposed by a government on sales of goods and services, typically calculated as a percentage of the purchase price.

Burden

In an economic context, this refers to the impact of a tax or other financial obligation on the parties involved, often measured in terms of how it affects their wealth or consumption.

  • Investigate the distribution of tax obligations between consumers and producers across a range of market environments.
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Sepideh FaramarziOct 18, 2024
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