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3. a. Explain graphically the incidence of taxation on producers and consumers in terms of the elasticities of supply and demand. (20 point) b. The

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3. a. Explain graphically the incidence of taxation on producers and consumers in terms of the elasticities 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 $2 per unit tax on the sale of rutabagas? Who bears the economic incidence of this tax? (10 point)

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