The incidence of a tax is determined by which side of the market is less sensitive to a change in price O who pays the tax out of pocket. whether the supply curve or demand curve shifts as a result of the tax. O how much tax revenue it generates. O how much paperwork there is to complete.

Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter17: Taxation And Resource Allocation
Section: Chapter Questions
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The incidence of a tax is determined by
which side of the market is less sensitive to a change in price
O who pays the tax out of pocket.
whether the supply curve or demand curve shifts as a result of the tax.
O how much tax revenue it generates.
how much paperwork there is to complete.
Transcribed Image Text:The incidence of a tax is determined by which side of the market is less sensitive to a change in price O who pays the tax out of pocket. whether the supply curve or demand curve shifts as a result of the tax. O how much tax revenue it generates. how much paperwork there is to complete.
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