The burden of a tax on a good is said to fall completely on the producers if the: Select one: a. price paid by consumers for the good declines by the amount of the tax. b. price paid by consumers does not change. c. wages received by workers who produce the good increase by the amount of the tax. d. price paid by consumers for the good increases by the amount of the tax.

Price NA GOREN $20 18 16 14 10 D DAfter Tax 0 10 20 30 40 50 60 70 80 90 Quantity According to the graph, the price sellers will receive after the tax is imposed is $18.00. $14.00. $12.00. $8.00.

a)Show in four diagrams the incidence of an indirect (specific) tax in the case of elastic and inelastic demand and elastic and inelastic supply. b)Consider supply in the long run. Assume that a specific tax is imposed on a good that was    previously untaxed. How will the incidence of this tax change as time passes?