If the price elasticity of supply is relatively high, how will producers respond to a tax imposed on a good?

When the price elasticity of supply is relatively high, it means that producers can easily adjust their production levels in response to changes in price. If a tax is imposed on a good, producers may choose to pass most of the tax burden onto consumers by raising prices. However, because they can quickly adjust how much they supply, they might also reduce the quantity they produce if the higher prices lead to lower demand. For example, if a tax increases the cost of making a toy, a toy manufacturer might raise prices, but if sales drop significantly, they may decide to make fewer toys instead of losing money. Overall, a high elasticity of supply allows producers to be more flexible in how they respond to taxes, balancing between price increases and production adjustments.