For a given supply curve,the more inelastic the demand for a good,
A)the more of an excise tax that is paid by sellers.
B)the less an excise tax is shifted.
C)the smaller the burden of an excise tax.
D)the more of an excise tax that is paid by buyers.
E)the smaller the increase in market price following imposition of an excise tax

Question

Quizplus · Accepted Answer

When demand is inelastic, consumers are less sensitive to price changes, so they bear a larger share of the tax burden, resulting in more of the excise tax being paid by buyers.

For a Given Supply Curve,the More Inelastic the Demand for a Good