Question: Elastic Supply, Inelastic Demand... 1. When supply is more elastic than demand... Price Price buyers pay Price before tax Price sellers receiv O Tax

Elastic Supply, Inelastic Demand... 1. When supply is more elastic than demand... Price Price buyers pay Price before tax Price sellers receiv O Tax Supply 2. ...the incidence of the tax falls more heavily on consumers... 3. ...than on producers. Demand Q after tax Q before tax Quantity

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