Jun has just learned that his favorite hoverboard manufacturer is going to be increasing the amount they produce. Jun has claimed that demand for hoverboards is relatively inelastic and that he would prefer if the demand was relatively elastic.

a) Is Jun correct in his assessment? Explain why or why not (hint: you may want to think about creating a graph with same quantity sold initially).

b) What if instead there was going to be a recall of hoverboards from the market (i.e. a reduction in supply) and Jun still believe he would be better off with a relatively elastic demand?

c) If there was a tax placed on hoverboards, would this impact Jun more if the demand is relatively inelastic compared to the demand being relatively elastic? Explain which would impose a lower tax incidence on Jun (hint: assume supply curve is the same in both cases).