Suppose that a tax is placed on music concerts.If the buyer ends up paying the majority of the tax,what do we know

Question

Quizplus · Accepted Answer

If the buyer ends up paying the majority of the tax, it implies that the demand for music concerts is relatively inelastic, meaning that consumers are willing to pay more even with the tax in place. A more inelastic demand curve suggests that buyers are less responsive to price changes than sellers. Therefore, the burden of the tax falls mainly on the buyers in this case.

Suppose That a Tax Is Placed on Music Concerts