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Suppose that we are in the butter market and the government implements an excise tax on butter. The price elasticity of demand for butter equals
Suppose that we are in the butter market and the government implements an excise tax on butter. The price elasticity of demand for butter equals 2 (ED=2) and the price elasticity of supply for butter equals 2 (Es=2). What is the portion of the tax that consumers will be burdened with? Is this realistic given the market we are in
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