If supply is more elastic than demand is, the
A)less the impact it will have on the consumers before tax income
B)more likely it is to lead to tax avoidance
C)less likely it will have any impact on market transactions
D)more the tax will fall on consumers
E)more the tax will fall on producers

Question

Quizplus · Accepted Answer

When supply is more elastic than demand, consumers are less responsive to price changes, so they bear a larger share of the tax burden.

If Supply Is More Elastic Than Demand Is, the