Quantity Price Buyers Pay Price Sellers Receive

(Pairs of jeans) ( Dollars per pair) (Dollars per pair)

Before Tax 250 $25 $25

After Tax 200 $23 $23

Using the data you entered in the previous table, calculate the tax burden that falls on buyers and on sellers, respectively, and calculate the price elasticity of demand and supply over the relevant ranges using the midpoint method. Enter your results in the following table.

Tax Burden Elasticity

(Dollars per pair)

Buyers _____________ __________

Sellers ____________ __________