Answer to Question #168363 in Microeconomics for Manav

Question

“If the Government wants to minimize the tax burden of any indirect tax 

on consumers, then it is necessary that the Government impose this tax on 

producers rather than consumers”. Is this statement True or False?

Answer 1

False

Because if the government impose this tax on producers rather than consumers, the producers will sell the goods at a higher price to compensate for the imposed tax, so it will be like the consumers pay the tax indirectly.