Compare the CS and PS before and after tax with taking into account different elasticity of demand

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Two linear demand curves go through the initial equilibrium e,. One demand curve is less elastic than the other at e, . The original horizontal supply curve also goes through e,. For which demand curve is the deadweight loss from a specific tax t greater? For which is the ratio of the deadweight loss (DWL) to the tax revenue (7) greater

Posted Date: Jun 21, 2024 02:07 PM

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Compare the CS and PS before and after tax with taking into account different elasticity of demand

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