In Figure, prove that the incidence of a $0.60 tax imposed on sellers could not be split

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In Figure, prove that the incidence of a $0.60 tax imposed on sellers could not be split equally between buyers and sellers, given the supply and demand curves as drawn.

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Macroeconomics Principles and Applications

ISBN: 978-1133265238

5th edition

Authors: Robert e. hall, marc Lieberman

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Question Posted: Dec 11, 2012 12:17 AM

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In Figure, prove that the incidence of a $0.60 tax imposed on sellers could not be split

Question:

$11 $11 9 95 105 85 115 (a) Inelastic Demand (b) Elastic Demand

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In order for the 060 tax to be divided equally between buyers and s...View the full answer

Macroeconomics Principles and Applications

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