The elasticity of demand for maracas is 2.0 and the elasticity of supply is 3.0. How much

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The elasticity of demand for maracas is –2.0 and the elasticity of supply is 3.0. How much will the price of maracas change with a per-unit tax of $2? Who bears the larger burden of the tax, consumers or producers?

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Public Finance and Public Policy

ISBN: 978-1429278454

4th edition

Authors: Jonathan Gruber

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Question Posted: Apr 25, 2015 07:43 AM

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The elasticity of demand for maracas is 2.0 and the elasticity of supply is 3.0. How much

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Elasticity of supply has a greater magnitude than that for demand so even bef...View the full answer

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