For a given elasticity of supply,the more ________ the demand for the good,the share of the tax paid by the buyers is ________.
A) inelastic; larger
B) inelastic; smaller
C) elastic; larger
D) elastic; smaller
E) elastic; the same

Question

Quizplus · Accepted Answer

When demand is inelastic, consumers are less sensitive to price changes, meaning they will bear a larger share of the tax burden.

For a Given Elasticity of Supply,the More ________ the Demand