In the case of relatively elastic demand, the money burden of tax is on:

Name: In the case of relatively elastic demand, the money burden of tax is on:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When demand is relatively elastic, consumers are more sensitive to price changes, meaning they are likely to reduce their quantity demanded significantly if the price rises. Therefore, sellers cannot easily pass the tax burden onto consumers without losing a significant number of sales. As a result, the seller bears more of the tax burden.

In the Case of Relatively Elastic Demand, the Money Burden