If the demand curve is very elastic and the supply curve is very inelastic in a market, then the sellers will bear a greater burden of a tax imposed on the market, even if the tax is imposed on the buyers.

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When the demand curve is very elastic, consumers are highly responsive to price changes and can easily switch to alternatives, reducing their quantity demanded significantly if the price rises. Conversely, when the supply curve is very inelastic, producers cannot easily change the quantity supplied in response to price changes. Therefore, even if a tax is imposed on buyers, the sellers will end up bearing a greater burden of the tax because they have less flexibility to adjust their quantity supplied and will have to lower prices to maintain sales, effectively absorbing most of the tax burden.

If the Demand Curve Is Very Elastic and the Supply