1) draw a supply and demand graph where the demand curve is more inelastic than the supply curve.

1) draw a supply and demand graph where the demand curve is more inelastic than the supply curve.  Who would pay (carry the majority of the tax incidence) the majority of any tax created in this market. 

2) draw a graph showing the long run equilibrium for perfect competition. 

3) draw a graph showing a long run equilibrium for monopolistic competition.

4) if both markets (in Q2 and 3) had the same cost curve what can you conclude about cost of production, price and output? 

1) Draw a supply and demand graph where the demand curve is more inelastic than thesupply curve. Who would pay (carry the majority of the tax incidence) the majority of anytax created in this…

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