9. Effect of a tax on buyers and sellers The following graph shows the daily market for wine when the tax on sellers is set at $0 per bottie. Suppose the government institutes a tax of $40.60 per bottle, to be paid by the seller. (Hint: To see the impact of the tax, enter the value of the tax In the Tax on Sellers field and move the green line to the after-tax equilibrium by adfusting the value in the Quantity field. Then, enter zero in the Tax on Seliers field, You should see a tax wedge between the price buyers pay and the price sellers receive.) Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accoreingly, Graph Input Tool (2) Market for Wine Quantity (bottles of wine) Demand Price (Dollars per bottle) 10 132.00 Supply Price (holars per boette) 9.00 Supply Shifter Tox on Selers (Dolwer per footte) Fill in the following table with the quantity sold, the price buyers pay, and the price sellers recelve before and after the tax: Using the data you entered in the previous tablo, calculate the tax burden that falls on buyers and sellers, respectively, and calculate the price elasticity of demand and supply throughout the relevant ranges using the midpoint method. Enter your results in the fallowing tables The burden of the tax falls more heavily on the elastic side of the market. Graph Input Tool