In tax incidence, statuary burden is who pays the tax to the government and economic incidence is who ultimately bears the burden via price changes. Which statement is correct?

• A. Statutory burden is who pays the tax to the government; economic incidence is who ultimately bears the burden via price changes.
• B. Statutory burden is economic; economic incidence is statutory.
• C. Statutory burden and economic incidence are the same.
• D. Statutory burden refers to who writes the tax code.

Answer: (A)