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Suppose a $1 tax is placed on the sellers of a good. The more elastic the supply of the good, the

Question

Suppose a $1 tax is placed on the sellers of a good. The more elastic the supply of the good, the
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Solution 1

more the burden of the tax will fall on the buyers.

Here's why:

  1. Elasticity of supply measures how responsive suppliers are to price changes. A good with elastic supply means that suppliers are very responsive to price changes - they will significantly increase or decrease the quantity they sup Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
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