Buyers of a product will bear the larger part of the tax burden,and sellers will bear a smaller part of the tax burden,when the
A)tax is placed on the sellers of the product.
B)tax is placed on the buyers of the product.
C)supply of the product is more elastic than the demand for the product.
D)demand for the product is more elastic than the supply of the product.

Question

Quizplus · Accepted Answer

When the supply is more elastic than demand, sellers can more easily adjust their quantity supplied, so buyers bear a larger share of the tax burden.

Buyers of a Product Will Bear the Larger Part of the Tax