Which of the following statements is most accurate with respect to the effects of taxes imposed on goods and services? A) The actual incidence will fall more heavily on the buyer if the demand is more elastic relative to supply. B) The statutory incidence will fall more heavily on the buyer if the supply is less elastic relative to demand. C) The actual incidence will fall more heavily on the seller if the supply is less elastic relative to demand.
A is incorrect because incidence will fall more on seller in this case. B is wrong because statutory incidence has nothing to do with supply/demand. C is correct because the seller is less able to adjust to changing market conditions, therefore they will have a heavier tax burden relative to the buyer.
I think it’s C b/c if buyers have more choices( demand more elastic), then tax burden hurt suppliers more