The More Elastic Side of the Market Can Escape More of the Tax
Panel A: When demand is more elastic than supply, buyers pay less of the tax than sellers.
Panel B: When supply is more elastic than demand, suppliers pay less of the tax than buyers.
Panel A: When demand is more elastic than supply, buyers pay less of the tax than sellers.
Panel B: When supply is more elastic than demand, suppliers pay less of the tax than buyers.