All things equal,producers bear more of a tax when supply is _____.All things equal,consumers bear more of a tax when demand is _____.

Question

Quizplus · Accepted Answer

Producers bear more of a tax when supply is inelastic because they have less flexibility to adjust their quantity supplied in response to the tax. Consumers bear more of a tax when demand is inelastic because they have less flexibility to adjust their quantity demanded in response to the tax.

All Things Equal,producers Bear More of a Tax When Supply