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90 $90.00 Excise Tax (0 - $20) 0.00 3 80 70 Demand Relatively Perfectly 60 Elastic Inelastic Relatively Elastic 50 S $50.00 Supply eBook 40 Less Perfectly 30 Elastic Elastic Perfectly Elastic . . . . . . . . . . . . . . .. 20 10 BEE CALCULATIONS 0 1.0 2.0 3.0 4.0 5.0 7.0 8.0 9.0 Quantity Price Paid Quantity (thousands per week) No Tax $50.00 4,000 With Tax $50.00 4,000 Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $20 and the demand curve is perfectly inelastic. Click the Tax Burden switch above the graph to On. Make additional modifications to the interactive tool as indicated to answer the following questions. a) If there is no tax, the equilibrium price is $50. If a $15 tax paid on sellers is implemented, the buyer will pay $ and the burden of the tax (Click to select) b) Suppose the supply curve gradually changed to become more elastic with the original equilibrium remaining at (Q,P) = (4000, $50) and no change to the demand curve. Complete the following statements that describe the effects of this change in supply elasticity. i) The quantity bought and sold does not change O decreases O increases and then decreases O increases O decreases and then increases ii) The government's revenue does not change O increases and then decreases O increases O decreases O decreases and then increases iii) The consumers' share of the tax burden, measured as percentage of government's revenue derived from consumers, increases and then decreases O increases . decreases and then increases O does not change O decreases iv) The producers' share of the tax burden, measured as percentage of government's revenue derived from producers, O does not change O increases O increases and then decreases . decreases O decreases and then increases