If the government wants to raise tax revenue and shift most of the tax burden to the sellers it would impose a tax on a good with:
A) an elastic demand curve and an inelastic supply curve.
B) an inelastic demand curve and an elastic supply curve.
C) an inelastic demand curve and an inelastic demand curve.
D) an elastic demand curve and an elastic supply curve.

Question

Quizplus · Accepted Answer

When demand is elastic and supply is inelastic, sellers bear more of the tax burden because they cannot easily reduce the quantity supplied, while buyers can reduce the quantity demanded.

If the Government Wants to Raise Tax Revenue and Shift