17. Draw a graph for a competitive market with a relatively elastic demand curve and inelastic supply

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17. Draw a graph for a competitive market with a relatively elastic demand curve and inelastic supply curve. Illustrate on the graph the impact of imposing a per unit tax on the suppliers of the good in terms of consumer and producer surplus, prices and quantities, as well as how much deadweight loss the tax creates and the revenue it generates for the government. Who bears the larger burden of this tax?

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Microeconomics

ISBN: 9780716759751

1st Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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