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Klive Chemparathy
on Dec 17, 2024

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If the demand curve is very inelastic and the supply curve is very elastic in a market, then the sellers will bear a greater burden of a tax imposed on the market, even if the tax is imposed on the buyers.

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in price.

Elastic Supply

A situation where the supply of a good changes significantly when its price changes.

Tax Burden

The measure of the impact of taxation on an individual's or entity's income, assets, or purchasing power.

  • Analyze the factors that determine the incidence of tax between buyers and sellers.
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LS
Louis SalasDec 17, 2024
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