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(4) How would the tax incidence be affected if the statutory incidence is on the shoulders of the sellers (as it goes in Europe and

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(4) How would the tax incidence be affected if the statutory incidence is on the shoulders of the sellers (as it goes in Europe and Asia)? (5) Assume that the 'arc-elasticities' - refer to the lecture note 2 for the definition - better reflect the Current economic situations. Was the demand for charcoal price-elastic between the two prices - before and after the tax? How about the supply? Do the elasticities have any implication on the tax incidence and welfare effects you've found in (2) - (3)? (6) As a result of the tax, would buyers spend more on charcoal or less than under the no-tax case? First, explain how you can answer withour calculating the buyers' monetary expenditures on charcoal. And then verify your thought by calculating them. If the government's goal was to discourage consumers' monetary expenditure on charcoal, what does this imply"

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