"The tax on insulin in the Philippines is anywhere between 10 and 20 percent. If you are rich and living in the Philippines, this is not a problem, but if you are poor, then insulin becomes something that you cannot afford." Why do buyers care so much about a tax on insulin, a vital daily medicine for those with diabetes?

Question

Quizplus · Accepted Answer

Buyers care about the tax on insulin because they pay virtually the entire tax due to the almost perfectly inelastic demand for insulin. This means that the quantity demanded does not change much in response to a change in price, so buyers cannot simply switch to a substitute or go without insulin. Therefore, they must bear the burden of the tax, which becomes a significant financial burden for poor individuals who require daily insulin injections.

"The Tax on Insulin in the Philippines Is Anywhere Between