The diagram illustrates the supply curve for a product. The government levies a specific indirect tax of $5 on the product. How will the product's price elasticity of supply change?
- Afrom elastic (>1) to inelastic (<1)
- Bfrom inelastic (<1) to elastic (>1)
- Cfrom inelastic (<1) to unitary (=1)
- Dfrom unitary (=1) to elastic (>1)