Demand for insulin is less elastic than supply of insulin. Government introduces a tax on insulin. Which of the following is true:
A. Consumers and producers will share the burden of taxation in equal proportion;
B. Consumers will bear the larger share of burden of taxation;
C. Producers will bear the larger share of burden of taxation;
D. We can't tell who will bear the larger burden.
=> Whoever has more inelastic curve bears more of the burden of taxation.