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Elasticity and Tax: For questions (a) and (b) , please indicate whether the statement is True or False and explain. (10 pts) a) Suppose supply

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Elasticity and Tax: For questions (a) and (b) , please indicate whether the statement is True or False and explain. (10 pts) a) Suppose supply is perfectly inelastic and demand the demand elasticity equals 1. Then there no deadweight loss in total surplus from a tax. Draw a graph to explain. (5 pts)

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