The government has placed a $10 per item tax on cat sweaters on the sellers. Below...

 

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The government has placed a $10 per item tax on cat sweaters on the sellers. Below are the price elasticity of demand and the price elasticity of supply. For each below, what is the dollar amount of the tax the buyer will pay and the dollar amount the seller will pay? ED = .3 ES = 1.2 ED = 3.0 ES = 2.0 ED = .5 ES = 1 ED = .5 ES = .5 %3D Can the government determine who bears the burden of the tax? Explain your answer. The government has placed a $10 per item tax on cat sweaters on the sellers. Below are the price elasticity of demand and the price elasticity of supply. For each below, what is the dollar amount of the tax the buyer will pay and the dollar amount the seller will pay? ED = .3 ES = 1.2 ED = 3.0 ES = 2.0 ED = .5 ES = 1 ED = .5 ES = .5 %3D Can the government determine who bears the burden of the tax? Explain your answer.

Answer rating: 100% (QA)

We can calculate the fraction of the tax actually borne by the demander consumer by dividing t... View the full answer