demand.
Panel (a) of Figure 6-9 shows a tax in a market with very elastic supply and rel-
atively inelastic demand. That is,
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good,
Tampa Bay Lightning Jerseys, whereas purchaseers are not very responsive. When a tax is imposed on a market
with these elasticities, the price received by sellers does not fall much,
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bear only a small burden. By contrast,
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indicating that purchaseers bear most of the burden of the tax.
Panel (b) of Figure 6-9 shows a tax in a market with relatively inelastic supply