Question

In which circumstance will the greatest amount of the tax be borne by the consumer?
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Answer 1

Answer:

if demand is more inelastic than supply, consumers bear most of the tax burden. but, if supply is more inelastic than demand, sellers bear the most of the tax burden.

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Answer 2

When supply is more elastic than demand is the circumstance which will be the greatest amount of the tax be borne by the consumer

Explanation:

• When supply exceeds demand, purchasers bear the brunt of the tax cost. When demand is more elastic than supply, manufacturers pay the majority of the tax burden.
• The supply curve must be fully elastic in order for the tax burden to fall totally on consumers. The supply curve must be horizontal in order to be depicted graphically.

• The tax burden is determined by the elasticity of demand and supply. When the demand elasticity is larger than the supply elasticity.