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Costa Costa
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6 years ago
If an excise tax is imposed on an item whose demand is perfectly elastic:
A) consumers will cease to purchase the item and avoid the tax completely
B) producers will cease to produce the item and avoid the tax completely
C) the government’s revenue from the tax will be zero
D) consumers will purchase the same quantity of the item and bear the full burden of the tax
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Microeconomics

Microeconomics


Edition: 2nd
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JavaewJavaew
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6 years ago
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