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Taxes imposed on petrol, tobacco products and alcohol are an important source of revenue for governments in most countries. In Australia, these taxes are known
Taxes imposed on petrol, tobacco products and alcohol are an important source of revenue for governments in most countries. In Australia, these taxes are known as excise taxes. For a good with inelastic demand, the tax burden will fall more heavily on the buyers. Explain why this is the case with clear examples.
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