Is There a Difference Between the "True Burden" of a Tax

question 145

Essay

Is there a difference between the "true burden" of a tax and who is legally required to pay a tax? Briefly explain.

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Definitions:

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, representing a state of market balance.

Shortage

A situation where demand exceeds supply, resulting in insufficient availability of a product or service.

Permanent Shortage

A sustained situation where the demand for a good or service persistently exceeds its supply, often due to fixed or limited quantities.

Price System

Mechanism that allocates resources, goods, and services based on supply and demand.