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hi how to draw the graph? Question 1 Suppose the government imposes an excise tax on a necessity and there is inelastic demand for the
hi
how to draw the graph?
Question 1 Suppose the government imposes an excise tax on a necessity and there is inelastic demand for the product. {a} Draw a supply-demand diagram to show the effects of this tax. The curves should reect the case where demand is inelastic (and supply is more elastic}. Label the initial equilibrium price and quantity: Po and Q0, and the new equilibrium price and quantity: P. and QI- {h} On your diagram1 clearly show the amount of the tax paid for by (i) the consumer, and {ii} the producerStep by Step Solution
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