Refer to the following graph. A $4 tax is levied on suppliers (represented by S₀ without the tax). From the graph and tax structure you know that the: A) elasticities of supply and demand are about the same. B) elasticity of supply is less than the elasticity of demand. C) elasticity of demand is less than the elasticity of supply. D) elasticities cannot be calculated.

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The Answer of Refer to the following graph. A $4 tax is levied on suppliers (represented by S₀ without the tax). From the graph and tax structure you know that the: A) elasticities of supply and demand are about the same. B) elasticity of supply is less than the elasticity of demand. C) elasticity of demand is less than the elasticity of supply. D) elasticities cannot be calculated.

Refer to the Following Graph