Firms don't pay taxes, only people pay taxes is a favorite slogan of the Wall Street Journal.
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"Firms don't pay taxes, only people pay taxes" is a favorite slogan of the Wall Street Journal. But our analysis in this chapter shows that in the long run (with an upward-sloping supply curve), at least some portion of a unit tax is paid out of producer surplus. Is the Wall Street Journal wrong?
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In the long run with an upwardsloping supply curve a unit tax is partly paid by consumers ...View the full answer
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Related Book For 
Intermediate Microeconomics and Its Application
ISBN: 978-1133189039
12th edition
Authors: Walter Nicholson, Christopher M. Snyder
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