If a tax is physically paid by sellers, then sellers bear the full 100% burden of the tax. Group of answer choicesTrueFalse

The correct answer is False.

Explanation:

In economics, the burden of a tax does not simply fall on the entity that physically pays it. The incidence of a tax refers to the distribution of the economic burden of the tax, which can be shared between buyers and sellers depending on the price elasticity of demand and supply.

1. If demand is inelastic: Buyers will bear a larger share of the tax burden.
2. If supply is inelastic: Sellers will bear a larger share of the tax burden.
3. If both demand and supply are elastic: The tax burden will be shared more equally.

Therefore, even if sellers are the ones who physically remit the tax payment to the government, the actual economic burden may be different.