Essay
Suppose Australia puts the same tax on cycads harvested in the wild and ornamental ferns sold in nurseries.Cycads are a very slow growing plant that is subject to a small, regular harvest in the wild, often by Aborigines.Assume that the tax is the same for both plants and that the elasticity of demand is the same for both plants.What would be the difference in the tax burden for these cycads and ferns and why?
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Cycads are basically drawn from a fixed,...View Answer
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