When more of tax on a product is borne by the buyer than the seller, the commodity involved has
When more of tax on a product is borne by the buyer than the seller, the commodity involved has fairly inelastic demand. This is
because when demand is inelastic, buyers are less responsive to price changes, so they will continue to buy the product even if the
price increases due to the tax. Therefore, the burden of the tax falls more heavily on the buyer.
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