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22. A market is in equilibrium at the point P = $100, Q = 6000. You are told that at that point, the elasticity of
22. A market is in equilibrium at the point P = $100, Q = 6000. You are told that at that point, the elasticity of demand is 1.2 (or 6/5) and the elasticity of supply is 3.6 (or 18/5). If a $1 per unit tax is placed on consumers in this market, then you know that the fraction of the tax (rounded to the nearest two decimal places) that falls on consumers (buyers) will be: A) 0 B) 0.05 C) 0.10 D) 0.15 E) 0.17 F) 0.20 G) 025 H) 0.30 I) 0.33 J) 0.40 K) 0.42 L) 0.50 M) 0.54 N) 0.60 0) 0.65 P) 0.67 Q) 0.70 R) 0.75 S) 0.80 T) 0.83 U) 0.85 V) 0.90 W) 0.95 X) 1 Y) 077 Z) none of the above
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