In which of these cases will the tax burden fall most heavily on sellers of the good?

Question

Quizplus · Accepted Answer

When the demand curve is relatively flat and the supply curve is relatively steep, it indicates that buyers are less sensitive to changes in price compared to sellers. This means that sellers will bear the majority of the tax burden as they are not able to shift the tax onto buyers in the form of higher prices. When the demand curve is steep, buyers are more sensitive to price changes, which means sellers have more room to increase prices in response to the tax, thereby shifting the burden partially onto buyers.

In Which of These Cases Will the Tax Burden Fall