The burden of a luxury tax most likely falls more heavily on sellers because demand is more elastic and supply is more inelastic.

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The burden of a luxury tax falls more heavily on sellers because demand is more elastic and supply is more inelastic. This means that when the price of a luxury good increases, consumers are more likely to reduce their consumption of that good, while producers are less likely to reduce their production of that good. As a result, the sellers of luxury goods bear a greater share of the burden of the tax.

The Burden of a Luxury Tax Most Likely Falls More