In general for an excise tax on a product, given supply, the more elastic is the demand for the product, the larger will be the portion of the tax shouldered by the buyers.

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Widly Jacques · Accepted Answer

Final Answer : False, Explanation :  When demand is more elastic, consumers are more sensitive to price changes and can more easily find substitutes or forego the product altogether, leading producers to absorb a larger portion of the tax to keep prices competitive.

In general for an excise tax on a product, given supply, the more elastic is the demand for the product, the larger will be the portion of the tax shouldered by the buyers.

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