CENGAGE | MINDTAP Chapter 06 Homework 7. Effect of a tax on buyers and sellers The following graph shows the weekly market for sweatpants in some hypothetical economy. Suppose the government levies a tax of $11.60 per pair. The tax places a wedge between the price buyers pay and the price sellers receive. 15 10 Supply 35 50, 25 30 Tax Wedge 25 PRICE ( Dollars per pair) 20 15 10 5 Demand 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Pairs of sweatpants) LALO6 10085 1810514868061715714733&elSBN=9780357723203&snapshotid=3320749&id=1725113176& G CENGAGE| MINDTAP Chapter 06 Homework Complete the following table by filling in 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 sweatpants) ( Dollars per pair) (Dollars per pair) Before Tax 50 25.00 25:00 After Tax 42 35.00 23.40 Using your answers from 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 Burden (Dollars per pair) Elasticity Buyers Sellers The tax burden falls more heavily on the side of the market that is elastic. Grade It Now Save & Continue Continue without saving