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insherro insherro
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7 years ago
When the government decides to impose a tax on sellers of a good or service, sellers try to pass the tax on to consumers by raising the price of the good being sold. Assume the government decides to place a $1 tax on each unit of a good sold, e.g., tires. Using the simple model of supply and demand, illustrate what would happen to the price and quantity of tires sold. Would the amount of tax paid by the consumer (as opposed to the producer) be greater when demand is elastic or inelastic? Why?
Textbook 
Economics for Managers

Economics for Managers


Edition: 3rd
Author:
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University of Ottawa - Economics for Managers
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sofreshsofresh
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7 years ago
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1
Sweet Caroline
Good times never seemed so good
I've been inclined,
To believe they never would
Oh, no, no

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insherro Author
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7 years ago
This site is awesome
mcraver1
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Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
apelton
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2 hours ago
Brilliant ツ
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