3. Effect of a tax on buyers and sellers The following graph shows the dailyr market for shoes. Suppose the government institutes a tax of $46.40 per pair. This places a wedge between the price buyers pay and the price sellers receive. 200 1Bl] 150 Supplyr 1w -|- 120 -' Tax Wedge / +.+ 1Dl] PRICE (Dollars per pair) 60 20 W D-rll"" Demand: . i i . . . 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Pairs of shoes) Fill in the Following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity Price Buyers Pay Price Sellers Receive ( Pairs of shoes) (Dollars per pair) (Dollars per pair) Before Tax E E C Using the data you entered in the previous table, calculate the tax burden that Falls on buyers and on sellers, respectively, and calculate the price elasticity of demand and supply over the relevant ranges using the midpoint method. Enter your results in the following table. Tax B u rden ( Dollars per pair) Elasticity Bums E L Sellers E l The burden of the tax falls more heavily on the V elastic side of the market