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A farmers market is an age-old form of farm direct marketing dating back to the early history of. our country. Markets bring farmers to urban and rural settings where consumers shop for fresh, locally grown foods. The direct-to-consumer connection builds relationships between.
If the product (apples) is price inelastic to the consumer the farmer is able to pass the entire tax on to consumers of apples by raising the price by $1. In this example, consumers bear the entire burden of the tax; the tax incidence falls on consumers. On the other hand, if the apple farmer is unable to raise prices because the product is price elastic the farmer has to bear the burden of the tax or face decreased revenues: the tax incidence falls on the farmer.