When supply is more elastic than demand,
A) producers carry the majority of the tax burden.
B) consumers carry the majority of the tax burden.
C) producers and consumers carry an equal amount of the tax burden.
D) producers carry all of the tax burden.

Question

Quizplus · Accepted Answer

When supply is more elastic than demand, consumers are less responsive to price changes, so they bear a larger share of the tax burden.

When Supply Is More Elastic Than Demand