Question: Draw two graphs side by side. In both graphs, draw a demand curve that is unit-elastic, and label this curve D1. In the graph on

Draw two graphs side by side. In both graphs, draw a demand curve that is unit-elastic, and label this curve D1. In the graph on the left, draw a supply curve (S1) that is relatively elastic, and label the equilibrium price P1 and the equilibrium quantity Q1. In the graph on the right, draw a supply curve (S2) that is relatively inelastic, and label the equilibrium price P2 and the equilibrium quantity Q2. Suppose a tax on producer is introduced, in which of the two graph is the dead weight loss (DWL) greater?

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