True or False, the more elastic is the supply, the less of a tax is paid by producers?

This is true. The formula for incidence for conumers is :





ES/(ES-ED) = Id





Where ES is elasticity of supply, ED is elasticity of demand, and Id is proportion of the tax paid by the consumer. What isnt paid by the consumer is paid by the producers. As ES goes to infinity (supply becomes really elastic), holding Ed constant, Id goes to 1 (i.e. consumers pay almost all of the tax, leaving the producers to pay close to nothing).True or False, the more elastic is the supply, the less of a tax is paid by producers?
This is true; High elasticity of supply relative to elasticity of demand puts less of a burden of a tax on producers and more of a burden on consumers. The price of the product increases but by less than the tax. Producers and consumers share the cost of the tax. The proportion of the burden borne by each depends on relative elasticities of supply and demand. This situation exists in the market for gasoline. Demand for gas is relatively inelastic as compared to elasticity of supply; that is producers have more latitude to alter the supply in response to conditions whereas consumers, while able to alter demand in response to price changes, still need gasoline. The elasticity of demand for gas is low and the burden of a gas tax falls mainly on consumers. This is also true of cigarettes, where the incidence of a cigarette tax falls mainly on consumers.True or False, the more elastic is the supply, the less of a tax is paid by producers?
either way, the tax will be the same