Use the following to answer questions:
Figure: Tax Incidence
-(Figure: Tax Incidence) Look at the figure Tax Incidence. Consumers are likely to bear more of the burden of an excise tax in the situations illustrated by panels:

Question

Use the following to answer questions:
Figure: Tax Incidence 
-(Figure: Tax Incidence) Look at the figure Tax Incidence. Consumers are likely to bear more of the burden of an excise tax in the situations illustrated by panels:

Quizplus · Accepted Answer

Consumers bear more of the tax burden when demand is inelastic (Panel A) or when supply is elastic (Panel D).

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