7. Effect of a tax on buyers and sellers The following graph shows the daily 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. PRICE (Dollars per pair) 200 180 160 140 120 Tax Wedge 100 80 60 40 00 20 0 50 100 Supply Demand 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 (Pairs of shoes) Price Buyers Pay Price Sellers Receive (Dollars per pair) (Dollars per pair) Before Tax After Tax Using the data you entered in the pre elasticity of demand and supply over 1.04 2.63 ble, calculate the tax burden that falls on buyers and on sellers, respectively, and calculate the price vant ranges using the midpoint method. Enter your results in the following table. Buyers Sellers 0.52 Tax Burden (Dollars per pair) 1.92 El The burden of the tax falls more heavily on the more elastic side of the market