Economic incidence of the tax on the consumers price, Macroeconomics

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Suppose the demand for bread is D(p), where dD/dp < 0, and the supply of bread is S(p - t), where t is a unit tax on bread.

Illustrate equilibrium with price on the Y-axis and quantity on the X-axis in which the t > 0.

Show the economic incidence of the tax on the consumer's price (dp*/dt) depends upon the price elasticity of demand and the price elasticity of supply.

Compute dp*/dt where QDemand= Ap?for?<0andQsupply=Bpηforη>0. Under what conditions does the incidence of the tax fall heavily on consumers?


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