Buyers of a good bear the larger share of the tax burden when the
(i)Supply is more elastic than the demand for the product.
(ii)Demand in more elastic than the supply for the product.
(iii)Tax is placed on the sellers of the product.
(iv)Tax is placed on the buyers of the product.

Question

Quizplus · Accepted Answer

When supply is more elastic than demand, buyers bear a larger share of the tax burden because sellers can more easily adjust their quantity supplied, leaving buyers to absorb more of the tax impact.

Buyers of a Good Bear the Larger Share of the Tax