Which of the following statements is true about sales or use taxes? A. Clearly, the producer...

 

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Which of the following statements is true about sales or use taxes? A. Clearly, the producer pays the tax since it is the producer who must find a way to collect the tax. B. Who pays the tax depends on the price elasticity of supply. C. Clearly, the consumer pays the tax since the consumer takes the item to the checkout counter and forks over the money. D. Who pays the tax depends on the price elasticities of supply and demand. E. Who pays the tax depends on the price elasticity of demand. Which of the following statements is true about sales or use taxes? A. Clearly, the producer pays the tax since it is the producer who must find a way to collect the tax. B. Who pays the tax depends on the price elasticity of supply. C. Clearly, the consumer pays the tax since the consumer takes the item to the checkout counter and forks over the money. D. Who pays the tax depends on the price elasticities of supply and demand. E. Who pays the tax depends on the price elasticity of demand.

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Ans is D the burden of tax will fal... View the full answer