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Consider the tax burden on consumers and producers of a $1 per-unit tax to be paid by producers when demand is perfectly elastic and supply
Consider the tax burden on consumers and producers of a $1 per-unit tax to be paid by producers when demand is perfectly elastic and supply is perfectly inelastic. The burden of the tax on consumers is D percent. (Enter your response as an integer.) The incidence of the tax falls entirely on producers because consumers demand the same quantity regardless of price. producers supply an infinite quantity. consumers are infinitely price sensitive. o 0o w producers are more price sensitive than consumers
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