If a tax is introduced in a market with highly elastic demand and inelastic supply, what is the most likely effect on the tax burden distribution between consumers and producers?

When a tax is introduced in a market where demand is highly elastic and supply is inelastic, the burden of the tax will mainly fall on producers rather than consumers. This is because consumers can easily change their buying habits if prices go up, so they will buy much less if the tax increases the price of the product. On the other hand, producers cannot easily change how much they supply, so they must absorb more of the tax burden to keep selling their goods. For example, if a tax is placed on a luxury item like designer shoes, consumers may stop buying them if the price rises too much, forcing producers to lower their prices and take on more of the tax cost. Therefore, in this situation, producers bear the greater share of the tax burden.