2. Suppose sales tax is collected on all online book sales. From the evidence in this case,...

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2. Suppose sales tax is collected on all online book sales. From the evidence in this case, what do you think is the incidence of the tax between seller and buyer? What does this imply about the elasticity of supply of books by book retailers? (Hint: Compare the pre-tax prices of the book.)

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Economics

ISBN: 125378

4th Edition

Authors: Paul Krugman, Robin Wells

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