Question

The term tax incidence refers to A. the amount of revenue collected by the government from a tax. B. the actual division of the burden of a tax between buyers and sellers in a market. C. the type of product the tax is levied on. D. the actual versus the desired division of a tax burden.

Answer 1

Answer:

The correct answer is (B)

Explanation:

Tax incidence or known as the tax burden is a phenomenon that is used for the equal distribution of economic welfare between the sellers and the buyers. Both sectors are equally burdened to achieve static equilibrium and economic welfare.  After careful study it is determined that who will bear the tax burden and who will not.