The more elastic the demand curve,_____.
A)the smaller the proportion of a tax paid by the suppliers
B)the smaller the proportion of a tax paid by the demanders
C)the more elastic the supply curve
D)the more the tax can be shifted to demanders

Question

Quizplus · Accepted Answer

The more elastic the demand curve, the smaller the proportion of a tax paid by the demanders. This is because when the demand curve is elastic, consumers are more responsive to changes in price, and therefore they will reduce their consumption more when the price increases due to a tax.

The More Elastic the Demand Curve,_____