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the claim
When supply is very elastic and demand is very inelastic, consumers bear most of the tax burden.
the verdict
COMMON KNOWLEDGE
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the weight of evidence
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Tax incidence depends on the relative price elasticities of supply and demand; when demand is inelastic and supply is elastic, the economic burden of a tax falls primarily on consumers as a matter of standard microeconomic theory.

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The analysis

The claim is a fundamental, definitional principle of microeconomic theory regarding tax incidence. Because it is a textbook economic identity following directly from definitions of elasticity and tax burden distribution, no citation of empirical papers is necessary, placing it under common knowledge.

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first checked04 Aug 2026
judged → COMMON KNOWLEDGE · 9504 Aug 2026
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