Suppose we have the following system of equations:
Say we want to find the tax burden of the consumer, the tax burden of the firm, and the total revenue generated for the government for some excise tax t.
Do we do this by looking at the elasticity of each the supplier and consumer?
The Elasticity of Q with respect to P can be calculated by:
$\eta_Q,_P = P/Q*dQ/dP$
With this we see that the elasticity of supply is 3 and the elasticity of demand is -5
Can we use these to find the tax burden? And how do we calculate the government tax revenue in terms of t for the government?