Compared to producers, consumers will lose the lesser amount of surplus from a tax if

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Business

Genevieve Shepard

28 June, 09:29

Compared to producers, consumers will lose the lesser amount of surplus from a tax if

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Cesar Yang · Answer 1

If a demand is more elastic than supply, consumer will lose the lesser amount of surplus from a tax. Producers carry most of the cost of the tax if demand is more elastic than supply, if the supply is more than elastic than demand consumers will carry most the tax load. Tax is the number one source of revenue of the government.