The amount of a tax paid by the sellers will be smaller the more _______ the demand and the more _______ The supply.

Question

Quizplus · Accepted Answer

The tax burden on sellers is smaller when demand is inelastic because consumers are less sensitive to price changes and will continue to buy the product. When supply is elastic, sellers can more easily adjust their production in response to the tax, reducing their burden.

The Amount of a Tax Paid by the Sellers Will