(Appendix) As the supply curve becomes steeper, the proportion of a sales tax paid by the seller

Question

Quizplus · Accepted Answer

A steeper supply curve means that the quantity supplied is less responsive to changes in price. This indicates that sellers have less flexibility to absorb the tax and will ultimately pass on a greater proportion of the tax burden to consumers in the form of higher prices. Therefore, as the supply curve becomes steeper, the proportion of the sales tax paid by the seller increases.

(Appendix) as the Supply Curve Becomes Steeper, the Proportion of a Sales