-The above figure shows the market for anti-freeze. The government imposes the sales tax shown in the figure on sellers. Anti-freeze sellers would pay a larger part of this tax than what is shown in the figure if the

Question

Quizplus · Accepted Answer

When supply is more inelastic, sellers are less able to change the quantity they supply in response to price changes, so they bear a larger burden of the tax.

-The Above Figure Shows the Market for Anti-Freeze