If the government imposes a tax of Rs. 2 per unit on a good and the price elasticity of demand for the good is -0.5, what is the incidence of the tax?

The incidence of the tax is determined by the price elasticity of demand and supply. Since the elasticity of demand for the good is -0.5, and the elasticity of supply is assumed to be perfectly elastic (i.e. infinity), the entire burden of the tax falls on the producers.