Illustrate with the help of a diagram, higher the price elasticity of demand, larger will be the per unit tax burden borne by the producers

Diagram: Per Unit Tax Burden and Price Elasticity of Demand

To illustrate how a higher price elasticity of demand leads to a larger per unit tax burden borne by producers, we can use a supply and demand diagram.

In this diagram:

• Price (P) is shown on the vertical axis, and Quantity (Q) is shown on the horizontal axis.
• The original supply curve (S0) represents the quantity producers are willing to ______ ______ ______ __________ _____ ______ _________ ________ __________ ________.
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