If Russia puts an export tax on logs and the supply of logs is inelastic and the demand for logs in China is elastic then:

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Quizplus · Accepted Answer

When the supply of logs is inelastic, it means that the price elasticity of supply is low, and the producers are not able to increase the quantity supplied much when the prices increase due to the tax. On the other hand, if the demand for logs in China is elastic, it means that the price elasticity of demand is high, and the consumers are very sensitive to price changes. As a result, the Chinese buyers will be more likely to switch to other substitutes or reduce their consumption of logs if the prices increase due to the tax. Therefore, in this scenario, the Chinese buyers will bear most of the burden of the tax.

If Russia Puts an Export Tax on Logs and the Supply