Hello Tutors,

I would like assistance on Questions 2 and 3.

Question 1 is successfully completed to show how it is correctly done.

I would prefer an thorough explanation and good formatting if possible!

I am sorry if this is an bit of work but I hopefully eased it down with completing Question 1

I will give an good review :)

Thank You and Take Care!

For problems 1 and 2 we will be analyzing an identical tax of 5101] per unit, starting from identical equilibrium mice and equilibrium quantity. But the outcomes will be very different. because of different slopes and elasticities. Thinl: oflis as a controlled lought experiment {it sounds cooler in German: Eedonkenexperiment]. "|"ou should be learning two things: methods to evaluate how a tax aFfects buyers and sellers [curve shifts and elasticities are the methods], and intuition about 1when to expect tax burdens to fall on buyers or sellers. The hardest part for marry students is to see that just because the goyemment says that someone will pay a tax, in reality the government nearer chooses who really pays a tax. Statutory Incidence: Legal burden of a tax. Economic Incidence: Actual meaningful burden of a tax. Real world example: The fedeml goyemment has placed a 5.13 pergallon tax on gasoline New Mexico adds another 5.19, for a total of 5.3? per gallon. The statutory incidence oflis tax is 100% on sellers. People buying gas just pay a price at the pump and the gas station is responsible for sending the money to the government. But iftlle tax has caused the mice at the pump to be higher than it otherwise would be {it has!:l, then some of the economic incidence of this tax: falls on buyers. If you are paying more for gas because of the tax. then you are paying some oftli'rs tax! If we know enough about supply and demand, we can calculate the tax burdens to the penny! We'll start by using a graphII then you'll gure out how to calculate tax burdens using elasticities.