The demand for food is very inelastic compared to the supply of food,so if a tax is imposed on the consumers of food,the tax incidence:

Question

Quizplus · Accepted Answer

The demand for food is inelastic, meaning that consumers are less likely to change their consumption habits in response to price changes. Therefore, if a tax is imposed on consumers, they are likely to continue buying the same amount of food, but at a higher price. This results in the tax burden falling more heavily on consumers than on producers.

The Demand for Food Is Very Inelastic Compared to the Supply