1)

a) Draw the supply and demand curves for a good whose price elasticity of demand is infinite.

b) Assume that a tax is imposed on the seller of the good; show this on the same diagram.

c) In this scenario, who pays the tax?

2)

a) Draw the supply and demand curves for a good whose price elasticity of supply is infinite.

b) Assume that a tax is imposed on the seller of the good; show this on the same diagram.

c) In this scenario, who pays the tax?