When the demand for a product is more elastic than the supply,
A)consumers pay the majority of the tax on the product.
B)consumers pay the entire tax on the product.
C)firms pay the majority of the tax on the product.
D)firms pay the entire tax on the product.

Question

Quizplus · Accepted Answer

When demand is more elastic than supply, consumers are more sensitive to price changes, so firms bear a larger share of the tax burden.

When the Demand for a Product Is More Elastic Than