If a tax is imposed on a market with elastic demand and inelastic supply:
A) buyers will bear most of the burden of the tax.
B) sellers will bear most of the burden of the tax.
C) the burden of the tax will be shared equally between buyers and sellers.
D) neither the buyer nor the seller will bear the burden of the tax..

Question

Quizplus · Accepted Answer

When demand is elastic and supply is inelastic, sellers bear most of the tax burden because they are less able to change the quantity supplied in response to the tax, while buyers can more easily change the quantity demanded.

If a Tax Is Imposed on a Market with Elastic