Incidence of tax

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Incidence of tax

The incidence of a tax refers to the extent to which an individual or organisation suffers from the imposition of a tax - it may fall on the consumer, the producer, or both. The incidence is also called the 'burden' of taxation.

How the incidence falls depends upon the price elasticity of demand.

Incidence evenly split
Incidence - even spread
Incidence more on the consumer
Incidence on consumer
Incidence more on the producer
Incidence on producer

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