Producers in a particular market will bear the greater burden of an excise tax:

Question

Quizplus · Accepted Answer

The more price-elastic the demand is relative to supply, the greater the burden of the excise tax will be on the producers. This is because when demand is more elastic, consumers will be more likely to shift their consumption to substitute products or reduce their overall demand in response to a price increase caused by the tax. As a result, producers will have less pricing power and may have to absorb more of the tax themselves in order to maintain their sales volume.

Producers in a Particular Market Will Bear the Greater Burden