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A tax on a good (with a somewhat elastic supply) which has a perfectly elastic demand...

A tax on a good (with a somewhat elastic supply) which has a perfectly elastic demand

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is completely shifted backward on the supplier

is completely shifted forward on the consumer

is divided in a not exactly predictable degree between consumer and producer

is likely to be divided about half-and-half between   producer and consumer

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Answer #1

Is completely shifted backward on the supplier

Explanation: The incidence of tax depends on the elasticity of demand and supply. When demand is completely elastic, consumers pay no tax and the entire tax shifts to the producers.

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