All else equal,if supply is relatively elastic and demand is relatively inelastic,a tax on a product will cause

Question

Quizplus · Accepted Answer

When supply is relatively elastic and demand is relatively inelastic, buyers tend to bear a larger portion of the tax burden. This is because sellers can more easily adjust their quantity supplied in response to the tax, while buyers, with their inelastic demand, are less responsive to price changes and thus end up paying more of the tax.

All Else Equal,if Supply Is Relatively Elastic and Demand Is