not choice 2

Out of competitive markets below, in which market would the producer pay the highest proportion of the tax, if the same per unit tax is introduced in all the markets? A market with the elasticity of demand if -0.5 and the elasticity of supply is 0.5 A market with the elasticity of demand if -0.5 and the elasticity of supply is 1.5 A market with the elasticity of demand if -2.5 and the elasticity of supply is 1.5 A market with the elasticity of demand if -2.5 and the elasticity of supply is 0.5 There is no example of a market where the producer pays a higher share of the tax