Mayor George Henry has a problem. He doesnt want to anger voters by taxing them because he

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Mayor George Henry has a problem. He doesn’t want to anger voters by taxing them because he wants to be reelected, but the town of Gapville needs more revenue for its schools. He has a choice between taxing tickets to professional basketball games or taxing food. If the demand for food is relatively inelastic while the supply is relatively elastic, and if the demand for professional basketball games is relatively elastic while the supply is relatively inelastic, in which case would the tax burden fall primarily on consumers? In which case would the tax burden fall primarily on producers?

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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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