If a tax is imposed on a good where both supply and demand are somewhat elastic,but supply is more elastic than demand,the burden of the tax will be borne

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Quizplus · Accepted Answer

In this situation, since supply is more elastic than demand, producers are able to adjust their production and supply curve more easily in response to the tax. This will result in a relatively smaller increase in price paid by consumers, while producers are able to absorb some of the tax burden by reducing their production costs. Therefore, consumers will bear most of the burden of the tax, but producers will also bear some of it.

If a Tax Is Imposed on a Good Where Both