Sellers of a product will bear the larger part of the tax burden,and buyers 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 demand is more elastic than supply, buyers are more responsive to price changes and can reduce their quantity demanded more easily, so sellers bear a larger portion of the tax burden.

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