The tax authorities of Mabalingwe, an imaginary country, have decided to impose a 99% tax on alcohol sales to reduce domestic abuse cases in the country. The tax is payable to the government on purchase of the product. Describe who bears the cost of this tax and, secondly, explain what drives this outcome

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Q: Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 10,000…

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