A tax is imposed on a market with an inelastic demand and an elastic supply.How is the burden of the tax divided
A)sellers pay the majority of the tax
B)buyers pay the majority of the tax
C)the tax burden is equally divided between buyers and sellers
D)the tax burden is divided, but it cannot be determined how

Question

Quizplus · Accepted Answer

When demand is inelastic and supply is elastic, buyers bear the majority of the tax burden because they are less responsive to price changes, meaning they will continue to buy even at higher prices.

A Tax Is Imposed on a Market with an Inelastic