In a market with elastic supply and inelastic demand, a tax is imposed. Using a graph, explain why consumers bear more of the tax burden.

• A. The demand curve is steeper, indicating inelasticity, so consumers cannot easily reduce quantity demanded.
• B. The demand curve is flatter, indicating elasticity, so consumers can easily reduce quantity demanded.
• C. The supply curve is steeper, indicating elasticity, so producers cannot easily reduce quantity supplied.
• D. The supply curve is flatter, indicating inelasticity, so producers can easily reduce quantity supplied.

Answer: (A)