The demand for salt is inelastic,and the supply of salt is elastic.The demand for caviar is elastic,and the supply of caviar is inelastic.Suppose that a tax of $1 per pound is levied on the sellers of salt,and a tax of $1 per pound is levied on the buyers of caviar.We would expect that most of the burden of these taxes will fall on

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Quizplus · Accepted Answer

When demand is inelastic, buyers bear most of the tax burden. When supply is inelastic, sellers bear most of the tax burden. Therefore, buyers of salt and sellers of caviar will bear most of the tax burden.

The Demand for Salt Is Inelastic,and the Supply of Salt