Which of the following is the most correct statement about tax burdens?

Question

Quizplus · Accepted Answer

According to the principle of tax incidence, a tax burden falls most heavily on the side of the market that is less elastic. In other words, the burden of a tax is borne more by consumers or producers who have fewer alternatives to the taxed good or service. Therefore, inelastic markets (where there are fewer alternatives) bear a higher tax burden compared to elastic markets (where there are more alternatives).

Which of the Following Is the Most Correct Statement About