Question: Consider the tax levied in Question 3. a. Calculate the tax incidence using PDand PSfrom Question 3. b. Who pays a larger share of the

Consider the tax levied in Question 3.

a. Calculate the tax incidence using PDand PSfrom Question 3.

b. Who pays a larger share of the tax: consumers or producers?

c. Use demand and supply elasticity to check your answer to b

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