3. a. Explain graphically the incidence of taxation on producers and consumers in terms of the clasticities of supply and demand. (20 point) b. The demand for rutabagas is Q -2,000 - 100P and the supply of rutabagas is Q - -100 + 200P. Who bears the statutory incidence of a S2 per unit tax on the sale of rutabagas? Who bears the economic incidence of this tax? (10 point) 4. Consider a consumer who wants to consume only two commodities and has an income of $100. Assume the price of good 1 is $10 per unit and the price of good 2 is $20 per unit. Now, inflation causes the price of good 1 to increase to $20 per unit, while the price of good 2 increases to $25 per unit. On the other hand, the consumer also gets a raise of $100 (so her new income is $200). Is she better off or worse off? (10 point)