In a simple competitive partial equilibrium setting, the burden of an
excise tax depends on elasticities of demand and supply: if demand for a taxed good or service is
elastic, and supply relatively inelastic, then the burden of an excise tax is borne by sellers, whereas buyers bear the burden of a tax on a good or service with inelastic demand and elastic
supply. Similar demand and supply elasticities imply equal sharing of excise tax burdens
between buyers and sellers.