Which of the following is the most correct statement about tax burdens?

Question

Quizplus · Accepted Answer

A tax burden falls more heavily on the side of the market that is less elastic. This is because when demand or supply is inelastic, it means that there are fewer substitutes available for consumers or producers, respectively. Therefore, they will be less able to adjust their behavior in response to the tax and will end up bearing more of the burden. On the other hand, when demand or supply is more elastic, consumers or producers will have more substitutes available, making it easier for them to adjust their behavior and avoid paying the tax.

Which of the Following Is the Most Correct Statement About