Assuming a unitary elastic demand and supply, a tax on the sellers of coffee will cause the price the buyer pays to and the price the seller receives to .

Question

Assuming a unitary elastic demand and supply, a tax on the sellers of coffee will cause the price the buyer pays to and the price the seller receives to .
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Solution 1

Assuming a unitary elastic demand and supply, a tax on the sellers of coffee will cause the price the buyer pays to increase and the price the seller receives to decrease.

Here's why:

  1. When a tax is imposed on sellers, they are likely to pass on some or all of this tax to the buyers in the form Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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