Incidence of subsidy and taxation

What happens if demand/supply is more elastic for a product what is the effect on consumers and producers for taxation who pays more of the burden and for a subsidy who gains more of the benefit.

What happens if demand/supply is more inelastic for a product what is the effect on consumers and producers for taxation who pays more of the burden and for a subsidy who gains more of the benefit.

Thanks

Hi ineedtorevise127,

Below are 4 diagrams with different scenarios in which I think relate back to what you're on about in your Original Post.

The buyers and suppliers incidence fluctuates dependent on how elastic something is.

Just ask if you don't understand something!

Thanks,
Alex

Thanks so much so helpful!
Do you know what is the case for a subsidy when demand is inelastic/elastic and supply is inelastic/elastic.
Who gets more of the benefits e.g. producers or consumers.
Really stuck on this!

I don't really understand what you're asking, because you've stated demand being both inelastic and elastic? That is theoretically impossible.

Lol sorry for the wording.
I mean say we have two different situations e.g. apples and education

e.g. subsidising education - it is inelastic in demand

If you subsidize it who would get more of the benefits from the incidence of subsidy consumers or producers.

e.g. apples - elastic in demand
if you subsidize it who would get more benefit from incidence of subsidy consumers or producers