A tax burden falls more heavily on the side of the market that

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Quizplus · Accepted Answer

A more inelastic market is less responsive to changes in price, so when taxes are imposed, producers and consumers are less likely to adjust their behavior and the tax burden falls more heavily on them. In contrast, a more elastic market would be more responsive to price changes and those involved would be better able to shift the burden of the tax onto the other party or adjust their behavior to avoid the tax altogether.

A Tax Burden Falls More Heavily on the Side of the Market