"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." If the government places the tax on sellers, what is the most likely tax incidence?

Question

Quizplus · Accepted Answer

When demand is inelastic, as it likely is for a necessary good like insulin, buyers tend to bear a larger share of the tax burden, even if the tax is levied on sellers.

"The Tax on Insulin in the Philippines Is Anywhere Between