Imagine that you are employed as a private consultant to advise the minister of finance on economic impact of a unit tax on different types of goods. Use a diagram to explain and discuss the impact of a unit tax imposed on two goods (one with an elastic demand curve and the other with an inelastic demand curve). The impact of the tax should be illustrated with respect to the excess burden associated with each demand curve

Imagine that you are employed as a private consultant to advise the minister of finance on economic impact of a unit tax on different types of goods. Use a diagram to explain and discuss the impact of a unit tax imposed on two goods (one with an elastic demand curve and the other with an inelastic demand curve). The impact of the tax should be illustrated with respect to the excess burden associated with each demand curve