Question

Higher the price elasticity of y
larger will be per unit tax burden boin
by the producers
quantity
ily infer
rt of the
and is​

Answer 1

Explanation:When demand is more elastic than supply, producers bear most of the cost of the tax. Tax revenue is larger the more inelastic the demand and supply are. ... The seller can then pass the tax burden along to consumers in the form of higher prices ... area, which is obtained by multiplying the tax per unit by the total quantity ...