The diagram shows the supply curve of a product.
The government imposes a specific indirect tax of ＄5 on the product.
How will the price elasticity of supply of the product change?
1 )
from elastic (>1) to inelastic (<1)
2 )
from inelastic (<1) to elastic (>1)
3 )
from inelastic (<1) to unitary (=1)
from unitary (=1) to elastic (>1)
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