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10- Assume that the disk markets have the following characteristic- Th.pdf

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10. Assume that the disk markets have the following characteristic. The elasticity of demand is 0.2 , and the elasticity of supply is 2 . If the government imposes a tax of $1.00 per disk, who will end up paying more of the tax: the consumer or the producer? Why? Draw a diagram illustrating your argument..

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10. Assume that the disk markets have the following characteristic. The elasticity of demand is 0.2 , and the elasticity of supply is 2 . If the government imposes a tax of $1.00 per disk, who will end up paying more of the tax: the consumer or the producer? Why? Draw a diagram illustrating your argument.

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  • 1. 10. Assume that the disk markets have the following characteristic. The elasticity of demand is 0.2 , and the elasticity of supply is 2 . If the government imposes a tax of $1.00 per disk, who will end up paying more of the tax: the consumer or the producer? Why? Draw a diagram illustrating your argument.