Question
When producer bears the cost of tax, what is the impact
on elasticity of demand and supply?Solution
If the demand for the commodity taxed is elastic, the tax will tend to be shifted to the producer but in case of inelastic demand, it will be largely borne by the consumer. In case of elastic supply, the burden will tend to be on the purchaser and in the case of inelastic supply on the producer. Covered in videos and study notes; snapshot from study notes of the ixamBee SEBI course 
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