G gazi New member Mar 4, 2011 #1 ...help!!!!!!!? It is said that the more inelastic the supply is, the more the incidence of tax will fall on producers. and in the case of subsidies, the price would fall greatly if supply is highly inelastic. why is that?
...help!!!!!!!? It is said that the more inelastic the supply is, the more the incidence of tax will fall on producers. and in the case of subsidies, the price would fall greatly if supply is highly inelastic. why is that?
