The tax burden falls more heavily on the side of the market that is more inelastic.

Name: The tax burden falls more heavily on the side of the market that is more inelastic.
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 able to respond to price changes, which is the side with more inelastic demand or supply, because they have fewer alternatives and cannot easily avoid the tax by changing their behavior.

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