@EvolLove many goods will sit between these extremes, with both producers and consumers price-sensitive to some degree. in that case, the incidence will be shared. perhaps the producer will drop prices by 4% and the consumer ends up paying a tax of 6% to cover the total 10% tax. so, in this case, the “tax (or tariff) incidence” falls 40% on the producer and 60% on the consumer. /fin