Answer
Burdens of tax are shared between buyers and sellers and this is determined by elasticity! The ability to leave the market is the central idea. For example, if the firm was selling a unique product then buyers bear the greater burden because they demand a product and cannot change the situation; they cannot simply leave the market.
Work Step by Step
This questions asks you to identify how sellers and buyers respond. Think elasticity then identify how each participant ( seller or buyer) can respond.