The more elastic the supply curve,_____.
A)the greater the tax evasion
B)the more suppliers have to bear the tax burden
C)the more suppliers can shift the tax burden to demanders
D)the more demanders shift the supply curve

Question

Quizplus · Accepted Answer

When the supply curve is more elastic, suppliers are more able to adjust their quantity supplied in response to changes in price (including taxes). This means that they have more ability to pass on the tax burden onto demanders, rather than absorbing it themselves. Therefore, choice C is the correct answer. Choices A and D are not related to the elasticity of the supply curve, and choice B is not accurate because a more elastic supply curve means that suppliers are less likely to bear the entire burden of the tax.

The More Elastic the Supply Curve,_____