Tax incidence refers to who actually pays the tax.

Tax incidence can be divided into 1. formal incidence :the party liable to the tax 2. Informal incidence :party who actually pays the tax,

The tax incidence is decided by the elasticity of demand and supply for a good or service.

Tax incidence is concerned with the tax welfare. Specifically, it analyzes the tax on economic welfare. It's said tax incidence takes the burden of the tax.

The legal incidence is on the person or company who is legally obliged to pay the tax. Effective incidence refers to who actually ends up paying the tax.

False

Who actually bears the burden of the tax