True or False: If the government imposes both a 50-per-cup excise tax and a 50-per-cup sales tax

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True or False: If the government imposes both a 50¢-per-cup excise tax and a 50¢-per-cup sales tax on coffee, then the price of coffee will not change.

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Price Theory and Applications

ISBN: 978-1285423524

9th edition

Authors: Steven Landsburg

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Question Posted: Oct 25, 2016 10:46 AM

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True or False: If the government imposes both a 50-per-cup excise tax and a 50-per-cup sales tax

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False The excise tax causes the supply curve to shift up...View the full answer

Price Theory and Applications

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