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mcadiedaHannastere mcadiedaHannastere
  • 09-01-2017
  • Social Studies
Answered

True or false: the effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.

Verified Answer :

mapboy9
mapboy9 mapboy9
  • 10-01-2017

True. It doesn't matter who the levy falls on, producer or consumer. The elasticity will determine who ends up paying the tax.

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