In the context of elasticity and tax incidence, when demand is _____, consumers bear a larger share of the tax burden as their quantity demanded is less responsive to price changes.

In the context of elasticity and tax incidence, when demand is inelastic, consumers bear a larger share of the tax burden. This means that when the price of a good increases due to a tax, consumers do not significantly reduce the amount they buy because they still need or want the product. For example, if the government imposes a tax on cigarettes, and the demand for cigarettes is inelastic, smokers will continue to buy nearly the same amount despite higher prices. Since they are not very responsive to price changes, sellers can pass on most of the tax to consumers. Therefore, when demand is inelastic, the tax burden falls more heavily on consumers rather than producers.