When a tax on a good is enacted, a. buyers and sellers share the burden of the tax regardless of whether the tax is levied on buyers or on sellers. b. buyers always bear the full burden of the tax. c. sellers always bear the full burden of the tax. d. sellers bear the full burden of the tax if the tax is levied on them; buyers bear the full burden of the tax if the tax is levied on them

A) buyers and sellers share the burden of the tax regardless of whether the tax is levied on buyers or on sellers.

Explanation:

No matter who is responsible for paying the tax, the burden is always shared by both the suppliers and the consumers. Any tax levied on a product or service always decreases the amount of money received by the supplier and increases the amount of money paid by the consumers.

To make things worse, both consumers and suppliers will lose because the quantity demanded will decrease, decreasing consumer surplus, and the quantity supplied will also decrease, decreasing supplier surplus. Taxes always result in a deadweight loss since the total economic surplus decreases.

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