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a.The government is considering to impose a per unit tax of $2.50 onDVDs. Market surveys have shown that the demand for DVDs in Malaysia is
a.The government is considering to impose a per unit tax of $2.50 onDVDs. Market surveys have shown that the demand for DVDs in Malaysia is perfectly elastic. If the supply of DVDs is a typical upward sloping curve, show graphically the impact of this per unit tax on the market for DVDs. How will the tax burden be shared between buyers and sellers of DVDs?
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