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Currently there are no taxes on the market for good X- At the current.pdf

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Currently there are no taxes on the market for good X . At the current equilibrium price and quantity, the price elasticity of demand is E D = -2.5 while the price elasticity of supply is E S = + 2.5 . Suppose the government decides to introduce a $1 per unit tax on X . Then it is likely that the burden of the tax will fall Only on the consumers Only on the producers On both producers and consumers, but more heavily on producers On both producers and consumers, but more heavily on consumers Equally on both consumers and producers.

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Currently there are no taxes on the market for good X . At the current equilibrium price and quantity, the price elasticity of demand is E D = -2.5 while the price elasticity of supply is E S = + 2.5 . Suppose the government decides to introduce a $1 per unit tax on X . Then it is likely that the burden of the tax will fall Only on the consumers Only on the producers On both producers and consumers, but more heavily on producers On both producers and consumers, but more heavily on consumers Equally on both consumers and producers

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