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Calculate the percentage of the tax borne by the demander and supplier in each of the following cases: Instructions: Enter your responses rounded to the nearest whole number. Elasticity of demand Elasticity of supply Percent borne by demander Percent borne by supplier a. ED = 0.7 ES = 2.0 % % b. ED = 1.0 ES = 1.0 % % c. ED = 1.6 ES = 3.2 % % d. ED = 2.0 ES = 0 % % e. Summarize your findings regarding relative elasticity and tax burden. Producers usually bear a greater portion of the tax burden because the government generally levies more taxes on producers. Whichever group (producers or consumers) has the higher elasticity bears the greater portion of the tax burden. Whichever group (producers or consumers) has the lower elasticity bears the greater portion of the tax burden. Consumers bear a greater portion of the tax burden because consumers choose to buy the good.
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Calculate the percentage of the tax borne by the demander and supplier in each of the following case...
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