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There are two goods: good A and good B. Assume that the supply of good A is perfectly inelastic, and the supply of good
There are two goods: good A and good B. Assume that the supply of good A is perfectly inelastic, and the supply of good B is perfectly elastic. Draw two graphs to compare the effects of sales tax imposed on (1) good A vs (2) good B. The sales tax is levied on buyers for both goods. Indicate CS, PS, tax revenue and DWL.
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