Economics Question: Download Economics PDF
What is the incidence of tax?
Answer:
Well tax incidence refers to who actually pays the tax.
Tax incidence can be divided into-
1. Formal incidence: the party liable to the tax
2. Informal incidence: party, who actually pays the tax
The tax incidence is decided by the elasticity of demand and supply for a good or service.
Tax incidence can be divided into-
1. Formal incidence: the party liable to the tax
2. Informal incidence: party, who actually pays the tax
The tax incidence is decided by the elasticity of demand and supply for a good or service.
| Previous Question | Next Question |
| What is the difference between an economic luxury and an economic necessity? | Is it true that government revenues are increased because of lower tax rates? |