Use the following to answer question:
-(Figure: Tax Incidence)Use Figure: Tax Incidence.Consumers are likely to bear more of the burden of an excise tax in the situations illustrated by panels:

Question

Use the following to answer question: 
-(Figure: Tax Incidence)Use Figure: Tax Incidence.Consumers are likely to bear more of the burden of an excise tax in the situations illustrated by panels:

Quizplus · Accepted Answer

Panels A and B show a market with a relatively steep demand curve compared to the supply curve. In such situations, consumers are likely to bear more of the burden of the excise tax. Panels C and D show a market with a relatively flat demand curve compared to the supply curve, meaning producers are likely to bear more of the tax burden.

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