what determines how the burden of a tax is divided between buyers and sellers why
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the burden of a tax is divided between buyers and sellers as depending on the elasticity of demand and supply.
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Answered by
2
Answer:
- The burden of the tax is imposed by dividing in between the buyers and the sellers.
- This dividing is done only by the term of demand and the supply of the goods and the services.
- There is the factor called as the elasticity which determines and describes the willingness and needful factors of the citizens baser on the goods and the services.
- If the demand is more the TAX is imposed on the buyers that is buyers has to hold a larger share of the tax.
- In other terms in the vice versa condition the sellers impose the higher tax.
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