Chapter 4 Elasticity and Tax Use the graphing tool below to answer the following questions. The answers can be downloaded at the bottom of the page. - For a demand elastic and a demand inelastic good, illustrate the effect of a change in supply on the equilibrium price.
- Illustrate whether consumers or suppliers pay the tax when demand is elastic or inelastic.
- Shade in the areas which represent the amount of tax paid by consumers.
Click here for full instructions on how to use the graphing tool
 Graphing tool instructions
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Download the answers (the zipped folder contains a Word and PDF version):
 Chapter 4 Graphical Question
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