Short term elasticity and long term elasticity aren't the same thing. Whoever has the greater elasticity doesn't pay much of the tax. In most markets, long ru

Short term elasticity and long term elasticity aren't the same thing. Whoever has the greater elasticity doesn't pay much of the tax. In most markets, long run elasticity of supply is very, very, very high. So that means demand side (consumers) end up paying the tax. But short term elasticity of supply can be low-- dominated by capital costs and inventory.