Assume that demand for gasoline is inelastic and supply is relatively elastic. The government imposes a sales tax on gasoline. The tax revenue is used to fund research into clean fuel alternatives to gasoline, which will improve the air we all breathe. Who bears more of the burden of this tax, consumers or producers

Respuesta :

Answer:

The burden is borne mostly by consumers

Explanation:

A Tax is said to be a compulsory or a Mandatory payment to local, state, or national government while Revenueis said to be the income of government derived or gotten from tax and non tax sources

Sales tax is termed a type of tax that is usually based on the cost of the item purchased and collected directly from the buyer. It is also said to be fee charged upon by the total cost of things you buy. It is collected by the seller and added onto the price. It's is due to a percent set by the government. consumers bore the tax payment mostly.