Refer to the following graph.A $4 tax is levied on suppliers (represented by S0 without the tax). From the graph and tax structure you know that the:

A. elasticity of demand is less than the elasticity of supply.
B. elasticity of supply is less than the elasticity of demand.
C. elasticities of supply and demand are about the same.
D. elasticities cannot be calculated.


Answer: C

Economics

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