This question is about elastic demand vs inelastic demand.

Is it better to tax inelastic or elastic goods?

By Zippia Team - Dec. 7, 2022

While it isn't necessarily better to tax elastic goods or inelastic goods, the burden of the taxes falls more on the consumer with one and the producer with the other.

With inelastic goods, if they're taxed, the main burden of that tax is on the consumer, who will buy them steadily no matter what. If taxing elastic goods, the tax falls more on the producer, who has to deal with differences in demand depending on the circumstance.

Is it better to tax inelastic or elastic goods?

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