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Back to Assignment Attempts Keep the Highest / 3 3 . Effect of a tax on buyers and sellers The following graph shows the weekly
Back to Assignment Attempts Keep the Highest / 3 3 . Effect of a tax on buyers and sellers The following graph shows the weekly market for handbags in some hypothetical economy. Suppose the government levies a tax of $40.60 per bag. The tax places a wedge between the price buyers pay and the price sellers receive. 200 180 160 Demand Supply 140 120 100 PRICE (Dollars per bag) Tax Wedge 80 60
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International Economics Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
9th Edition
978-0132146654, 0132146657, 9780273754091, 978-0273754206
