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Consider the market for white athletic socks, which consumers consider to be identical products. If the demand is very elastic and the supply is very
Consider the market for white athletic socks, which consumers consider to be identical products. If the demand is very elastic and the supply is very inelastic, how would the burden of a new tax on athletic socks be shared between consumers and producers?
What if the situation were reversed - a very inelastic demand and a very elastic supply? How would that change the way consumers and producers share the burden of the new tax? Justify please, if you can.
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