Question 16 When supply is elastic and demand is inelastic, the tax incidence falls on the government consumer producer

Consumer.

Step-by-step explanation

Tax incidence refers to the effect of a tax on the two parties involved in a transaction, the producer of the product and the consumer who purchases it. The tax burden is determined by the price elasticity of supply and demand, not by whether the government collects revenue from producers or consumers. Because consumption is inelastic, no matter how high the price, the consumer will consume roughly the same amount. The producer will be able to generate the same amount of product but will be allowed to raise the price by the tax amount. As a result, consumers will be responsible for the entire tax.