The demand for rutabagas is Q = 2,000 100P and the supply of rutabagas is Q
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The demand for rutabagas is Q = 2,000 – 100P and the supply of rutabagas is Q = –100 + 200P. Who bears the statutory incidence of a $2 per unit tax on the sale of rutabagas? Who bears the economic incidence of this tax?
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If the tax is on the sale of rutabagas the buyer bears the statutory incidence since the stic...View the full answer
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