Prior to the existence of the nation-state, Europe was comprised of several multi ethnic empires, the largest and most powerful of which was the Holy Roman Empire. Territory changed hands often. Many times, this took place because of marriage or as a result of war.
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Incidence of tax is the impact that a tax simply has on how the economic welfare are being distributed. It refers to how tax is being distributed between the producers and the buyers of a particular good. It should be noted that the tax burden is shared by the sellers depending on the elasticity of the said product.
For example, in a situation whereby a $2 tax is imposed on each good a producer produces, if the producer then pass the tax to the final consumers when he raised the price of the goods by $2, we can simply say that such good has a price inelastic as the entire burden falls on the consumer.
Also, assuming the producer can't increase prices because such good is price elastic, that is, there will be a greater change in the quantity of the goods demanded, the burden will be felt by the producer alone. Here, we can say that the tax incidence falls on the producer.
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wind energy hope this help!
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Our Axis Always point towards the north star no matter where we are in the orbit.. Hope it works
