The statutory incidence of a tax is the same as the economic incidence of a tax whenever a tax is levied on a side of a market that is perfectly price-inelastic.
Answer the following statement true (T) or false (F)
True
Rationale: If one side of the market is perfectly price inelastic, the tax will be fully passed on to that side of the market no matter how it is statutorily levied. Thus, if the statute levies the tax on the inelastic side of the market, the economic incidence is the same as the statutory incidence.
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