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5 Mins read
•GeneralWho Truly Pays? Exploring Tax Incidence and Elasticity

Summary
The blog explains the concept of tax incidence, detailing how the burden of taxes is distributed between buyers and sellers. It illustrates that elasticity of supply and demand determines whether consumers or producers bear the cost, using examples like cigarettes and fine jewelry. It underscores the implications for consumer prices, producer profits, and tax fairness.