When price elasticity of demand is _____, this tends to increase the portion of the tax paid by buyers.

Name: When price elasticity of demand is _____, this tends to increase the portion of the tax paid by buyers.
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Question

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When demand is inelastic, consumers are less sensitive to price changes, meaning they will continue to buy the product even if the price increases, including absorbing the higher costs due to taxes. This results in buyers bearing a larger portion of the tax burden.

When Price Elasticity of Demand Is _____, This Tends to Increase