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9 Refer to the interactive below: Tax Burden Skipped Tax imposed on: Supply Demand r !l Excise Tax (0 $20) 0_() eEook Demand Perfectly . Relatively References Inelastic Elasc Relatively Elastic Supply Less Elastic Perfectly Elastic E CALCULATIONS 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9 0 (thousands per week) Instructions: Adjust the sliders so that the vertical intercept ofthe demand curve is $80 and the supply curve is perfectly elastic. Click the Tax Burden switch above the graph to On. Make additional modications to the interactive tool as indicated to answer the following questions. Instructions: Adjust the sliders so that the vertical intercept of the demand curve is $80 and the supply curve is perfectly elastic. Click the Tax Burden switch above the graph to On. Make additional modications to the interactive tool as indicated to answer the following questions. a) lfthere is no tax, the equilibrium price is $50. lfa $15 tax on sellers is implemented, the buyer will pay $ |:| and the burden of b) Suppose the demand curve gradually changed to become more inelastic (and even perfectly inelastic) with the original equilibrium remaining at (OP) = (4000, $50) and no change to the supply curve. Complete the following statements that describe the effects of this change in demand elasticity. i) The quantity bought and sold decreases and then increases increases does not change increases and then decreases decreases ii) The government's revenue decreases and then increases decreases does not change increases and then decreases increases iii) The consumers' share of the tax burden, measured as percentage of government's revenue derived from consumers, increases decreases and then increases does not change decreases increases and then decreases iv) The producers' share of the tax burden. measured as percentage of government's revenue derived from consumers, increases and then decreases increases decreases and then increases does not change decreases Instructions: Adjust the sliders so that the vertical intercept of the demand curve is $80 and the supply curve is perfectly elastic. Click the Tax Burden switch above the graph to On. Make additional modications to the interactive tool as indicated to answer the following questions. a) If there is no tax, the equilibrium price is $50. lfa $15 tax on sellers is implemented, the buyer will pay 55 |:| and the burden of thet \\x (Click to select) is entirely paid by buyers [3) 5 is entirely paid by sellers changed to become more inelastic (and even perfectly inelastic) with the original equilibrium rern is shared by buyers and sellers change to the supply curve. Complete the following statements that describe the effects of this ownum" i) The quantity bought and sold decreases and then increases increases does not change increases and then decreases decreases ii) The government's revenue decreases and then increases decreases does not change increases and then decreases increases iii) The consumers' share of the tax burden, measured as percentage of government's revenue derived from consumers, increases decreases and then increases does not change decreases increases and then decreases iv) The producers' share of the tax burden, measured as percentage of government's revenue derived from consumers, increases and then decreases increases decreases and then increases does not change decreases