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Excise Tax Affects Price Paid By Consumer

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05/12/2017 DONALD NSIKAk JACKSON Critical Thinking 30. In a market where the supply curve is perfectly inelastic, how does an excise tax affect the price paid by consumers and the quantity bought and sold? * In this situation the excise tax would affect the price paid by the consumers if supply is more inelastic than demand, and sellers would bear most of the tax burden. Although the quantity supply would remain unchanged and the price paid by the consumers would remain the same too. If the supply was elastic and sellers had the possibility of reorganizing their businesses to avoid supplying the taxed good, the tax

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