What is the incidence of a tax?
-the ratio of a tax to a products price
-the final burden of a tax
-the levying of a tax on consumers
-the sum of a tax and a products price
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Tax incidence (or incidence of tax) is an economic term for understanding the division of a tax burden between stakeholders, such as buyers and sellers or producers and consumers. ... When supply is more elastic than demand, the tax burden falls on the buyers.
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