Question

1. When demand is less elastic (more inelastic) than supply, the tax burden falls primarily on...

1. When demand is less elastic (more inelastic) than supply, the tax burden falls primarily on consumers, why

2. When demand is more elastic than supply, as shown in, the tax burden falls primarily on producers.

What is the reason that products such as alcohol, cigarettes, and gasoline are taxed so heavily? Support your answer by above mentioned facts

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Answer #1

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