when the supply curve is perfectly elastic and Demand is linear and downwards slopping so who consume the whole burden of tax ?
Answers
Answered by
0
Answer:
Tax incidence is the manner in which the tax burden is divided between buyers and sellers.
The tax incidence depends on the relative price elasticity of supply and demand. When supply is more elastic than demand, buyers bear most of the tax burden. When demand is more elastic than supply, producers bear most of the cost of the tax.
Explanation:
Similar questions