If the government collects a $ 1 specific tax, what share of the tax is paid by

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If the government collects a $ 1 specific tax, what share of the tax is paid by consumers and firms in each of the following cases? Explain why.
a. The demand curve is vertical at quantity Q and the supply curve is upward sloping.
b. The demand curve is horizontal at price p and the supply curve is upward sloping.
c. The demand curve is downward sloping and the supply curve is horizontal at price p.

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Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander

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