Homework Answers
We take absolute value of elasticities.
Burden of share on buyers = es/(ed+es) = 1.2/(1.2+0.6) = 0.67
Buyers pay 0.67*4= 2.67
Burden of share on sellers = ed/(ed+es) = 0.6/(1.2+0.6) = 0.33
Sellers pay 0.33*4 = 1.33
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