The government has increased VAT on some commodities in order to raise revenue. The market for commodity X was at equilibrim before tax at price Ksh. 50 per unit sold and the quantity was 5000 units. Suppose own price elasticity of demand is 0.6 and the elasticity of supply is 1.1 After the government announced tax measures the new market price increased to Ksh. 70 per unit. Calculate the equilibrium price and quantities before tax. Calculate the seller and buyers burden, Explain

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