Essay
Suppose the supply curve is perfectly inelastic and the equilibrium price is $5 and equilibrium quantity is 7.If the government impose an excise tax of $1 per unit,what will be the new price and quantity traded? What is the total tax revenue and who pays the tax?
Correct Answer:
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P = $5
Q = 7
Tax rev...View Answer
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Correct Answer:
Verified
Q = 7
Tax rev...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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