Since the demand for radishes is relatively elastic, a tax on radishes would be largely borne by radish farmers.

Question

Quizplus · Accepted Answer

When demand is elastic, consumers are more sensitive to price changes, meaning they are likely to reduce their consumption significantly if the price rises. Therefore, in the case of a tax on radishes, the farmers would likely have to bear a larger portion of the tax burden, as they cannot easily pass the cost onto consumers without significantly reducing the quantity sold.

Since the Demand for Radishes Is Relatively Elastic, a Tax