How does a tax affect market participants?

Question

David · Accepted Answer

The market participants are the buyers and sellers participating in the market activity exchanging good and services in lieu of prices.  So when a good or service is taxed by government, buyers and sellers of that good or service share the burden of the tax. But the real question is how exactly is the tax burden shared between the buyer and the seller? It is unlikely that it would be shared equally.

How does a tax affect market participants?

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment