If a government imposes a tax on a good with relatively inelastic demand, who is more likely to bear the burden of the tax?

When a government imposes a tax on a good that has inelastic demand, it means that consumers will continue to buy it even if the price increases. This is because the good is often a necessity, like medicine or basic food items, which people need regardless of the cost. In this case, the burden of the tax usually falls more heavily on the consumers rather than the producers. For example, if a tax is added to a life-saving medication, patients will still need to buy it, and they will likely pay the higher price that includes the tax. Therefore, the government collects more tax revenue, but the consumers feel the impact of the tax through higher prices.