If the demand for a good is more elastic than its supply, the tax burden is borne

Answer Details

When the demand for a good is more elastic than its supply, it means that consumers are more sensitive to changes in the price of the good than the producers. Thus, if a tax is imposed on the good, the producers will have to bear most of the tax burden by reducing the price they charge for the good. If the producers cannot reduce their prices, they will have to pay the tax out of their profits, reducing the quantity they supply to the market. As a result, the consumers' price may not change much, and they will continue to buy the same quantity of the good. Therefore, the tax burden is more likely to be borne by the producers. Hence, the correct answer is "more by producers."