In Australia, stamp duty is a tax typically paid for by buyers when purchasing a home....

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In Australia, stamp duty is a tax typically paid for by buyers when purchasing a home. Explain how tax incidence is distributed between buyers and sellers and comment on the size of the deadweight loss generated by the stamp duty. Use the figures below, which describe demand and supply in the absence of a tax, to support your argument and distinguish between short and long-term housing markets. Comment on the impact on the market price in each market, assuming the same per-unit tax is applied to both markets. Graph A Graph B S P no Qe Q P Pe Qe Q In Australia, stamp duty is a tax typically paid for by buyers when purchasing a home. Explain how tax incidence is distributed between buyers and sellers and comment on the size of the deadweight loss generated by the stamp duty. Use the figures below, which describe demand and supply in the absence of a tax, to support your argument and distinguish between short and long-term housing markets. Comment on the impact on the market price in each market, assuming the same per-unit tax is applied to both markets. Graph A Graph B S P no Qe Q P Pe Qe Q

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Two graphs are presented in this case one described as Graph A and the other Graph B In Graph A we s... View the full answer