Answer to Question #293735 in Microeconomics for Payne

Question

Draw a graph showing that given the supply of a goods ,the less responsive the quantity demanded is to price the greater is the share of the tax paid by consumers in the form of higher prices

Answer 1

Share of Tax Graph

The area represented by A in the Graph indicates the share of tax payable by the consumer.

Area B however shows the share of tax payable by the producer.