ck to Assignment Attempts 0 0 Keep the Highest 0/3 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 $10.15 per pair. This places a wedge between the price buyers pay and the price sellers receive. PRICE (Dolars per pair 50 45 40 Demand Supply 35 R& Tax Wedge 20 10 5 0 100 200 300 400 500 600 700 800 000 1000 QUANTITY (Pairs of shoes) Fill in the following table with the quantity sold, the price buyers pay, and the price sells receive before and after the tax. Quantity (Pairs of shoes) Price Buyers Pay (Dollars per pair) Price Sellers Receive (Dollars per pair) Before Tax After Tax 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 Burden (Dollars per pair) Elasticity Buyers Sellers The burden of the tax falls more heavily on the elastic side of the market. Grade It Now Save & Continue Continue without saving