The tax burden is mainly borne by the producers if the supply is more elastic than the demand.

Question

The tax burden is mainly borne by the producers if the supply is more elastic than the demand.
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Solution 1

The statement is incorrect. If the supply is more elastic than the demand, the tax burden is mainly borne by the consumers, not the producers.

Here's why:

  1. Elasticity of supply refers to the degree to which quantity supplied responds to a change in price. If supply is elastic, it means producer Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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