1. The government imposes a per-unit tax of 4 sheqles on banana and demand for banana is elastic. Calculate the consumer and producer share of tax burden and explain it on the graph?
1. The government imposes a per-unit tax of 4 sheqles on banana and demand for banana is elastic. Calculate the consumer and producer share of tax burden and explain it on the graph?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. The government imposes a per-unit tax of 4 sheqles on banana and
2. Explain the expansion path when it is an increasing return to scale using graph and numbers. What does this mean?
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