Which statement accurately describes how the tax burden is allocated?

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When a tax is imposed on a product considered essential by consumers, the sellers bear the largest share of the tax burden.The tax burden is always borne by the group (buyers or sellers) who are legally responsible for paying the tax.The way a tax burden is divided depends on the relative price elasticities of supply and demand, not on legal rules.The tax burden primarily falls on the market participants (buyers or sellers) who are most likely to exit the market if prices change unfavorably.

Explanation

The allocation of a tax's burden does not depend on who is legally required to pay it but rather on the relative price elasticities of supply and demand. The side of the market that is less responsive to price changes (more inelastic) will bear a greater share of the tax burden.