The more elastic the supply of a product, the more likely it is that the burden of a tax will
A) fall on sellers.
B) fall on buyers.
C) fall equally on both buyers and sellers.
D) be borne by the public sector, and not by market participants.

Question

Quizplus · Accepted Answer

When supply is more elastic, sellers can more easily adjust their quantity supplied in response to a tax, so the burden of the tax is more likely to fall on buyers who have less flexibility in their demand.

The More Elastic the Supply of a Product, the More