Which of the following is an example of tax shifting?

A. As property taxes increase, landlords raise rents.
B. As taxes on businesses rise, businesses raise their prices.
C. Businesses make their taxes consumer taxes.
D. All of these choices are true.



Answer :

Final answer:

Tax shifting examples include businesses raising prices due to tax increases and landlords raising rents in response to property tax hikes.


Explanation:

Tax shifting is when the burden of a tax is passed on from one party to another. An example of tax shifting is when businesses raise their prices as taxes on businesses rise, ultimately passing the tax burden to consumers. Another example is when property taxes increase, and landlords raise rents, shifting the tax burden onto the tenants.


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