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    Exam 3: Applying the Supply-And-Demand Model
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    If the Government Decides to Levy an Ad Valorem Tax
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If the Government Decides to Levy an Ad Valorem Tax

Question 40

Question 40

Multiple Choice

If the government decides to levy an ad valorem tax on product with a perfectly inelastic supply.The consumers tax incidence will be


A) 0
B) 1
C) .5
D) Cannot be determined.

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