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Suppose that the government is contemplating a new tax, and that design is such that the statutory incidence falls on suppliers. The government is considering

Suppose that the government is contemplating a new tax, and that design is such that the statutory incidence falls on suppliers. The government is considering two distinct markets in which to levy this tax: Market 1 with relatively elastic demand, and Market 2 with relatively inelastic demand. In which market do consumers bear a greater burden of the tax? Explain the logic behind your conclusion using pictures as needed

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