What typically occurs when supply is more elastic than demand in terms of tax burden?

When supply is more elastic than demand, it indicates that sellers can more easily adjust their production in response to price changes, while consumers are less responsive to changes in price. This situation results in a greater share of the tax burden falling on consumers rather than sellers.

In this scenario, because sellers can easily reduce the quantity they supply when a tax is imposed, they typically distribute the burden of the tax toward buyers by increasing prices. However, since demand is inelastic (consumers are less sensitive to price changes), buyers will continue to purchase similar quantities even at higher prices, leading sellers to absorb less of the tax burden. Consequently, sellers end up paying less of the tax, and consumers shoulder more of the cost reflected in the prices they pay.

Therefore, the correct response highlights that sellers pay less of the tax burden under these conditions, reflecting the economic principle that when supply is more elastic relative to demand, the tax burden shifts more significantly onto consumers.