When demand for a product is very inelastic, the burden of a tax falls mainly on
A)producers.
B)consumers.
C)tax collectors.
D)people who drop out of the market.

Name: When demand for a product is very inelastic, the burden of a tax falls mainly on A)producers. B)consumers. C)tax collectors. D)people who drop out of the market.
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Question

Quizplus · Accepted Answer

When demand is inelastic, consumers are less sensitive to price changes, so they bear more of the tax burden as they continue to purchase the product despite the higher price.

When Demand for a Product Is Very Inelastic, the Burden