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

Quizplus · Accepted Answer

Producers bear more of the tax burden when the supply curve is more inelastic relative to the demand curve. In panels B and C, the supply curve is relatively steeper (more inelastic) compared to the demand curve, indicating that producers will bear a larger share of the tax burden.

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