Multiple Choice
Economists have shown that the burden of a tax is the same whether the tax is collected from the buyer or the seller.Why, then, are gasoline and cigarette taxes imposed on sellers?
A) Sellers are more honest than buyers.
B) The demand for both gasoline and cigarettes is very elastic.
C) The Supreme Court has ruled that the government cannot impose taxes like these on buyers.
D) It is more difficult for buyers to keep track of their purchases, and for the government to verify that the right amount of tax revenue is collected.
Correct Answer:

Verified
Correct Answer:
Verified
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