what is elastic vs inelastic demand 
elastic demand is demand that rises or falls based on the price of the service or product state of the economy or financial health of individuals inelastic demand is demand that is to an extent impervious to price fluctuations the state of the economy tax incidence or any other financial consideration it is the difference between something like entertainment or self care purchases versus food and medicine the bottom linetax incidence is a measure of the tax burden between producers and consumers or between different groups in an economy elasticity which measure the relationship between prices and the demand for goods is an element that helps determine tax incidence inelastic goods are those that consumers will continue to buy even as the price goes up for example gasoline and prescription drugs by contrast with elastic goods like a new home car or fashion consumer demand will drop as prices rise the tax burden shifts with inelastic vs elastic goods tax incidence also can be used to determine the fairness of a taxation system by contrasting the tax burden across a population for example using tax data from 2019 connecticut issued a report in 2022 finding that its state and local tax system is unfair and regressive since working and middle class families pay a higher percentage of their income in taxes than upper class families and the wealthy connecticut had come to the same conclusion in 2014 using tax data from 2011 2