Asked by
Klive Chemparathy
on Dec 17, 2024Verified
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.
Verified Answer
LS
Learning Objectives
- Analyze the factors that determine the incidence of tax between buyers and sellers.