In the market for coffee, the elasticity of demand is estimated to be -0.6 and the elasticity

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In the market for coffee, the elasticity of demand is estimated to be -0.6 and the elasticity of supply is estimated to be 1.2. If the government imposes a $1 tax on each cup of coffee sold, what share of that tax will be paid by buyers, and what share will be paid by sellers?
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Microeconomics

ISBN: 978-1464187025

2nd edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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