A greater burden of tax on a product with high price elasticity of demand rests mainly on the

A greater burden of tax on a product with high price elasticity of demand rests mainly on the producer. This is because when the price of a product with high price elasticity of demand increases due to tax, consumers will be less willing to buy it, leading to a decrease in quantity demanded. As a result, the producer will have to bear a greater portion of the tax burden in order to maintain sales. On the other hand, if the product has low price elasticity of demand, consumers will continue to buy it even if the price increases due to tax, allowing the producer to pass on the tax burden to consumers in the form of higher prices.