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Assume the price elasticity of demand is perfectly elastic and the price elasticity of supply is elastic for blueberry muffins. If the government taxes the
Assume the price elasticity of demand is perfectly elastic and the price elasticity of supply is elastic for blueberry muffins. If the government taxes the suppliers of blueberry muffins. What do we know about the tax incidence? Group of answer choices Producers will bear a greater burden of the tax, but not all of the tax. Producers will bear all the tax. Consumers will bear all the tax. Consumers will bear a greater burden of the tax, but not all the tax. Consumers and producers will bear the tax burden equally
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