Is the Incidence of a tax always passed to the consumer?

[nirgrahamUK]

What determines price?

the price of the commodity for sale is determined by demand supply relationship. when a government lay a tax on a commodity. call it T. when the tax is first levied, businesses cant raise prices (‘to forward the cost on to consumers’) any more than they could have before the tax was brought into force. reason is the consuemr effective demand hasnt changed, and neither has the supply.(commodities waiting on shelves). these commodities sell at the same old price initially P. but know a typical bu…