Consider two markets that are similar in almost every way. Demand in one market is quite elastic though while demand in the other is quite inelastic. They have the same supply and the same equilibrium price and quantity. Suppose that the same size tax is placed on each market. Sort the effects of the tax based on their relative size in the different markets. If they are of equal size, leave the item unplaced. Pseller is the price the seller receives after the tax, Pbuyer is the price the buyer pays after the tax, and Qtax is the quantity produced after the tax.

How to separate them?

(D Assignment Score: D Resources 9 Hint