Asked by

Grace Gourmet
on Nov 26, 2024

verifed

Verified

When an excise tax or sales tax is imposed on a product, the sellers are always able to shift the burden of the tax on to the buyers.

Excise Tax

A tax levied on specific goods or activities, such as alcohol, tobacco, and gasoline, often intended to discourage their use or to raise revenue.

Sales Tax

A tax imposed by governments on the sale of goods and services, adding on to the purchase price paid by consumers.

  • Comprehend the impact of demand and supply elasticity on tax incidence.
verifed

Verified Answer

MF
Madison FellowsDec 01, 2024
Final Answer:
Get Full Answer