The graph above shows the lost consumers' and producers' surplus in the two markets. Consumers' surplus in green, producers' in purple. Consumers lose the greater suplus in the coffee market, because their demand is more inelastic, less flexible. Because demand for popsicles is more elastic, consumers substitue away from popsicles easily and thus producers are able to pass on less of the tax, causing producers to lose the greater surplus in the popsicle market.
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