The actual burden of a tax
A) falls most heavily on the side of the market that is more elastic.
B) falls most heavily on the side of the market that is more inelastic.
C) falls most heavily on the side of the market that is closest to unitary elasticity.
D) is distributed independently of relative elasticities of supply and demand.

Question

Quizplus · Accepted Answer

The actual burden of a tax falls most heavily on the side of the market that is more inelastic because that side is less responsive to price changes and cannot easily avoid the tax by changing the quantity bought or sold.

The Actual Burden of a Tax