Final answer:
The elasticities of supply and demand determine who bears the burden of a particular tax.
Step-by-step explanation:
The subject of this question is Economics and it is suitable for College level students.
The elasticities of supply and demand determine who bears the burden of a particular tax. When demand is more inelastic than supply, consumers bear most of the tax burden. Conversely, when supply is more inelastic than demand, sellers bear most of the tax burden.
For example, if the demand for a certain product is relatively inelastic while the supply is more elastic, consumers will bear a larger portion of the tax burden.