The more elastic the demand for a good, the more incidence of an excise tax can be shifted to the consumer.

Answer 1

False, The more inelastic the demand the more the producer can shift the burden of the tax on the consumer.

Tip - The curve that is the most inelastic pays the biggest burden of the tax.

If demand is more inelastic consumers pay more if the supply is more inelastic the producers pay more.

A perfectly inelastic demand implies that consumers will pay all of the tax.