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FRQ question on effect of government imposed sales tax on each item sold . 2 For each of the following questions, assume that the government

FRQ question on effect of government imposed sales tax on each item sold .

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2 For each of the following questions, assume that the government imposes a per-unit sales tax and that the supply curve is upward sloping. O In industry X, consumers buy the same quantity no matter what the price is. Using a correctly labeled graph, show what happens to the price and quantity sold when the tax is imposed Explain how the burden of the tax will be distributed between buyers and sellers

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