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Economics 11th Edition by William McEachern
Edition 11ISBN: 978-1305505469Economics 11th Edition by William McEachern
Edition 11ISBN: 978-1305505469 Exercise 9
Suppose a tax is imposed on a good with a perfectly elastic supply curve.
a. Who pays the tax?
b. Using demand and supply curves, show how much tax is collected.
c. How would this tax revenue change if the supply curve becomes less elastic?
a. Who pays the tax?
b. Using demand and supply curves, show how much tax is collected.
c. How would this tax revenue change if the supply curve becomes less elastic?
Explanation
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Tax incidence and supply elasticity
A t...
Economics 11th Edition by William McEachern
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