Government levied a tax on good D. The elasticity of the supply changed without changing the no-tax equilibrium point. Because of the change, the buyers’ tax incidence rose. Answer how the elasticity changed: More elastic or Less elastic, and answer how the after-tax equilibrium quantity would change: Decrease or Increase. Hint: If you are not sure, draw a figure with two demand curves. Elasticity: After-tax equilibrium quantity:

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