If the government wants to raise tax revenue and shift most of the tax burden to the sellers it would impose a tax on a good with a: a. steep (inelastic) demand curve and steep (inelastic) demand curve. b. steep (inelastic) demand curve and a flat (elastic) supply curve. c. flat (elastic) demand curve and a steep (inelastic) supply curve. d. flat (elastic) demand curve and a flat (elastic) supply curve.

C) flat (elastic) demand curve and a steep (inelastic) supply curve.

Explanation:

This tax increase will affect tax suppliers more because:

the supply curve is very inelastic, that means that the quantity supplied changes very little when the price changes the demand curve is very elastic, that means that the quantity demanded changes dramatically when the price changes

Since a change in price will affect the quantity supplied very little, but a change in price will plummet the quantity demanded, then the suppliers will be forced to absorb most of tax burden.

c. flat (elastic) demand curve and a steep (inelastic) supply curve.

Explanation:

If the government wants to raise tax revenue and shift most of the tax burden to the sellers it would impose a tax on a good with a flat (elastic) demand curve and a steep (inelastic) supply curve.

If the government taxes a product with a perfectly elastic demand, it would be impossible for producers to increase the price of the product in order to pass the tax on to the consumers because they will stop buying if price is increased to take account of the tax, therefore the tax burden would be borne fully by the producer.

Therefore tax burden borne by producer or consumer depends on price elasticity, the more elastic the demand, the more of the burden that would not be shifted on to the consumer.