A tax burden falls more heavily on the side of the market that is less elastic.

Name: A tax burden falls more heavily on the side of the market that is less elastic.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The tax burden falls more heavily on the side of the market that is less elastic because that side of the market is less responsive to price changes and therefore cannot easily avoid the tax by changing the quantity bought or sold.

A Tax Burden Falls More Heavily on the Side of the Market