What effect does specific tax have on equilibrium price

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What effect does a specific tax have on equilibrium price and quantity, and what is the incidence of the tax on consumers and producers, if the following statement is true:

1. The demand curve is perfectly inelastic. 2. The demand curve is perfectly elastic. 3. The supply curve is perfectly inelastic. 4. The supply curve is perfectly elastic.

Use graphs to justify your answers.

Reference no: EM131112598

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