(Solved): Draw a graph for a market where the demand is relatively inelastic, and the s ...

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Draw a graph for a market where the demand is relatively inelastic, and the supply is relatively elastic. Show the impact of a per-unit excise tax that shifts the supply curve to the left. (Make sure you draw a big graph and a big shift!) On your graph indicate the tax revenue that results from the tax. Also show how the tax is split between the producer and consumer. Who bears the larger burden-the consumer or the producer? Now draw a graph for a market where the demand is relatively elastic, and the supply is relatively inelastic. Show the impact of a per-unit excise tax that shifts the supply curve to the left. (Make sure you draw a big graph and a big shift!) On your graph indicate the tax revenue that results from the tax. Also show how the tax is split between the producer and consumer. Who bears the larger burden-the consumer or the producer?