Final answer:
The tax burden on consumers is zero when demand is perfectly elastic, meaning consumers will stop buying a product if its price rises due to a tax, forcing producers to absorb the full tax.
Step-by-step explanation:
Following the imposition of a tax, the tax burden imposed on consumers is equal to zero if the elasticity of demand is perfectly elastic. This occurs because consumers are highly sensitive to price changes and would cease to purchase the product altogether if the price increased due to the tax. Therefore, producers would have to bear the entire tax burden to maintain sales, as any attempt to pass the tax onto consumers would result in a total loss of sales.
If demand is more inelastic than supply, consumers bear most of the tax burden, because they are less sensitive to price changes and will continue to buy relatively the same quantity despite higher prices caused by the tax. In contrast, when supply is more inelastic than demand, sellers bear most of the tax burden, because they have fewer options to adjust their production or selling practices in response to the tax.