7- Draw a price inelastic supply curve- Then draw a demand increase on.docx
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7. Draw a price inelastic supply curve. Then draw a demand increase on the same graph. Which changed more price or quantity? 8. Suppose a tax is placed on the producer. What happens to supply? Draw the shift in supply assuming that demand is inelastic. Show in the graph who bears the burden of the tax (in other words, is the producer able or unable to pass the tax cost to the consumer?) .
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