If demand is more inelastic than supply, consumers bear most of the tax burden.
If demand is more inelastic than deliver, clients endure maximum of the tax burden, and if deliver is extra inelastic than call for, dealers endure most of the tax burden.
Tax incidence also can be related to the rate elasticity of deliver and demand.
While supply is greater elastic than call for, the tax burden falls on the shoppers. If demand is more elastic than delivery, producers will undergo the value of the tax.
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