Question: Use the graph below to answer the following questions: $50 $45 Price per pair $40 $35 Supply $30 $25 $20 $15 $10 Demand $5 $0

Use the graph below to answer the following questions: $50 $45 Price per pair $40 $35 Supply $30 $25 $20 $15 $10 Demand $5 $0 0 2 4 6 8 10 12 14 16 18 20 Quantity of shoes a. Demonstrate the effect of a $15 tax per pair of shoes on equilibrium quantity and equilibrium price. b. What is the new equilibrium price of shoes? Why didn't the price rise by the amount of the tax? c. Shade the amount of the tax paid by consumers and label it A. What is its numerical value? d. Shade the amount of the tax paid by producers and label it B. What is its numerical value? e. Within this range of prices, is demand more or less elastic than supply? Explain your answer. Answer the question without calculating elasticities

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