1. Civil wars and violent revolutions often occur due to sales taxes. Suppose that only consumers can start violent revolts. Is violence over tax grievances more likely to occur when demand is inelastic, or elastic? What if supply is more elastic than demand?

2. Consider a perfectly inelastic supply curve at q = 1,013, and a perfectly elastic demand curve at p = 101. A tax of $5 per unit is levied on consumers. Using a diagram, explain how the tax burden is shared between consumers and producers. What is the Deadweight Loss?