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Problem 4 Economic Incidence of Taxation: In the market for coffee, the elasticity of demand is estimated to be 0.6 and the elasticity of supply
Problem 4 Economic Incidence of Taxation: In the market for coffee, the elasticity of demand is estimated to be 0.6 and the elasticity of supply is estimated to be 1. 2. If the government imposes a $1 tax on each cup of coffee sold, What share of that tax will be paid by buyers, and What share will be paid by sellers
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