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a) if the residential demand for water increases but the supply authority can only supply 22.50million litres of water a day describe the situation in the market for water. elastic inelastic? b)what are the key influences on the elasticity of demand for residential water use that you think make demand elastic at certain price ranges c)if the gov imposed a 0.05% per 1000litre excise tax on producers for their water supplies over all price ranges explain with a graph how you would expect this to affect the water market tax incidence
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