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Suppose that the demand for gasoline is very inelastic and the supply is very elastic.If a sales tax was imposed on gasoline, who bares the
Suppose that the demand for gasoline is very inelastic and the supply is very elastic.If a sales tax was imposed on gasoline, who bares the burden of the tax and why?What does a sales tax do to the price of a good, and how does the government lose or benefit?Be sure to explain graphs where possible to explain your answer?
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