4. Tax Incidence: How do the effects of a tax differ between
markets with different elasticities of supply? Consider two
hypothetical markets. In both cases, the demand function is
QD = 450 -.5P
The two supply functions are
QS1 = .5P - 50
and
QS2 = P - 300
a. Solve for equilibrium price and quantity for both cases and
show that the equilibrium values are the same in these two cases
(for QS1 and QD and for QS2 and...