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The impact of instituting a specic tax on equilibrium quantity in the market Q) will be greater the more elastic are both demand and supply.
The impact of instituting a specic tax on equilibrium quantity in the market Q) will be greater the more elastic are both demand and supply. 0 will depend only on the elasticity of demand. Q will depend only on the elasticity of supply. 0 will be greater the less elastic are both demand and supply
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