Problem
1. What is meant by the incidence of a tax? How is the incidence of an excise tax related to the elasticities of supply and demand in a market?
2. In the competitive market for hard liquor, the demand is relatively inelastic and the supply is relatively elastic. Will the incidence of an excise tax of $T be greater for consumers or producers?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.