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    Exam 14: Taxation and Income Distribution
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    Suppose That Demand Is Perfectly Inelastic
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Suppose That Demand Is Perfectly Inelastic

Question 8

Question 8

Essay

Suppose that demand is perfectly inelastic.Supply is normal and upward sloping.What is the economic incidence of a unit tax placed on suppliers? Illustrate this with an appropriate diagram.

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The economic inciden...

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