Below is a slide from the Schweser videos on Econ. I believe this is incorrect, that is to say that the if demand is inelastic consumers would bear the higher burden of the tax and vice versa. Comments? Taxes• Incidence of a tax •– Statutory •– Actual • Elasticity of demand •– Elastic: consumers bear higher burden •– Inelastic: suppliers bear higher burden
yup, pretty sure thats wrong.