When a tax is collected from the buyers in a market, a. the buyers bear the burden of the tax b. the tax burden falls most heavily on the buyers c. the sellers bear the burden of the tax d. the tax burden on the buyers and sellers is the same as an equivalent tax collected from the sellers dit

When a tax is imposed in a market, the **economic incidence** (i.e., who ultimately bears the burden of the tax) depends on the relative **elasticities of supply and demand**, not on who the tax is initially levied upon. This means that whether the tax is collected from buyers or sellers, the distribution of the tax burden between buyers and sellers remains the same, assuming the tax amount is equivalent. **Explanation of Options:** - **a. the buyers bear the burden of the tax** *Incorrect.* The burden isn't solely on buyers; it depends on elasticity. - **b. the tax burden falls most heavily on the buyers** *Incorrect.* This is only true if demand is significantly less elastic than supply, which isn't always the case. - **c. the sellers bear the burden of the tax** *Incorrect.* Similar to option a, the burden isn’t solely on sellers. - **d. the tax burden on the buyers and sellers is the same as an equivalent tax collected from the sellers** *Correct.* The economic burden distribution remains the same regardless of whether the tax is levied on buyers or sellers. **Correct Answer:** **d. the tax burden on the buyers and sellers is the same as an equivalent tax collected from the sellers**