please answer this question QUESTION 42 than supply consumer

please answer this question.

QUESTION 42 than supply, consumers bear most of tax burden. When we are discussing tax incidence and elasticity, if demand is more

Solution

When demand is less elastic than supply implies consumers bear most of the tax burden. As elasticity measures the responsiveness of demand with respect to price, higher the responsiveness of demand of consumers when price varies more easier to resist the impact of price change. The relationship between tax incidence and elasticity can be seen via laffer curve.