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The following graph shows the daily market for jeans when the tax on sellers is set at $0 per pair. Suppose the government institutes a tax of $11.60 per pair, to be paid by the seller. (Hint: To see the impact of the tax, enter the value of the tax in the Tax on Sellers field and move the green line to the after-tax equilibrium by adjusting the value in the Quantity eld. Then, enter zero in the Tax on Sellers eld. You should see a tax wedge between the price buyers pay and the price sellers receive.) Use the graph input tool to help you answer the following questions. You will not be scored on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey eld will change accordingly. Graph Input Tool Market for Jeans 100 -- I Quantity 90 (Pairs of jeans) 10 80 __ Demand Price Supply Price SUpply (00'1\" Par Pair) 150'00 (Dollars per pair) 34-00 70 60 __ Supply Shifter PRICE (Dollars per pair) 50 ._ _ + TaX on Sellers 0 00 40 __ i\\ ( Dollars per pair) ' 30 }+ Ijemand 20 I I 10 | 0 0 1o 20 30 40 50 so 70 so 90 100 QUANTITY (Pairs of jeans) Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity Price Buyers Pay Price Sellers Receive (Pairs of jeans) (Dollars per pair) (Dollars per pair) Before Tax After Tax Using the data you entered in the previous table, calculate the tax burden that falls on buyers and sellers, respectively, and calculate the price elasticity of demand and supply throughout the relevant ranges using the midpoint method. Enter your results in the following table. Tax Burden (Dollars per pair) Elasticity Buyers V Sellers 7 The burden of the tax falls more heavily on the v elastic side of the market