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(d) Suppose that we incorrectly assumed that supply was perfectly elastic and there was no impact of the tax on the equilibrium price. Would EB/Tax

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(d) Suppose that we incorrectly assumed that supply was perfectly elastic and there was no impact of the tax on the equilibrium price. Would EB/Tax Revenue be higher or lower than what you calculated in part (c)? In 1-2 sentences, explain your answer. 5 marks

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