Answer to Question #309701 in Macroeconomics for Tuan Tuan

Question

For an accurate diagram that illustrates the influence of the price elasticity of demand upon the incidence of the tax.

• For an accurate diagram that illustrates the influence of the price elasticity of supply upon the incidence of the tax. 

Answer 1

1.) Diagram that illustrates the influence of the price elasticity of demand upon the incidence of the tax.

Tax increases price for consumers.

2.) Diagram that illustrates the influence of the price elasticity of supply upon the incidence of the tax. 

Tax reduces income to consumers