What are the determinants of supply elasticity? Costs because? ANSWER Time because? ANSWER

Explain/interpret this 2 graphs.

1.

\fEffects of Different Demand Elasticities on Sales Tax Incidence S $2.30 S 2.00 $0.40 tax 1.90 Price per pack D 0 9 10 Millions of packs per day Panel A: Less elastic demand 70Effects of Different Demand Elasticities on Sales Tax Incidence St $2.10 S 2.00 $0.40 tax 1.70 D' Price per pack O 7 10 Millions of packs per day Panel B: More elastic demand 79Effects of Different Supply Elasticities on Sales Tax Incidence S $2.30 t S $2.00 $0.40 tax X $1.90 Price per pack D" 0 8 10 Millions of packs per day Panel A: More elastic supply 80Effects of Different Supply Elasticities on Sales Tax Incidence S $2.10 S 2.00 $0.40 tax Price per pack 1.70 D" O 9 10 Millions of packs per day Panel B: Less elastic supply 81