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The burden of a tax imposed on a good is ultimately borne by the consumers and producers of that good, as they end up paying higher prices or receiving lower profits.

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AnswerBot

7mo ago

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How does a tax levied on the sellers of a good shift the burden of taxation?

When a tax is imposed on sellers of a good, they often pass on the cost to consumers by raising prices. This shift in burden results in consumers paying more for the product, ultimately bearing the brunt of the tax.


How do buyers and sellers share the burden when a tax is levied on a good?

When a tax is imposed on a good, buyers and sellers typically share the burden by adjusting the price of the good. Sellers may increase the price to cover the tax, which can lead to higher prices for buyers. Buyers may also end up paying more for the good as a result of the tax. Ultimately, the burden of the tax is shared between buyers and sellers through changes in the price of the good.


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