current objective explain the relationship between elasticity and tax incidence question true or false? if…
current objective explain the relationship between elasticity and tax incidence question true or false? if demand is more inelastic than supply, then sellers will bear more of a tax burden. select the correct answer below: true false
Answer
Brief Explanations:
The party with more inelastic demand - or supply - bears more of the tax burden. When demand is more inelastic than supply, consumers are less responsive to price changes. So, they will bear more of the tax burden, not sellers.
Answer:
False