1. The state of Texas recently enacted a $5-per- customer tax on strip clubs [Fernandez, 2011]. Discuss the likely incidence of such a tax. Use an appropriate diagram as the basis for your discussion.

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter5: Elasticity
Section: Chapter Questions
Problem 20RQ: Under which circumstances does line tax burden fall entirely on consumers?
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1. The state of Texas recently enacted a $5-per-
customer tax on strip clubs [Fernandez, 2011].
Discuss the likely incidence of such a tax. Use
an appropriate diagram as the basis for your
discussion.
Transcribed Image Text:1. The state of Texas recently enacted a $5-per- customer tax on strip clubs [Fernandez, 2011]. Discuss the likely incidence of such a tax. Use an appropriate diagram as the basis for your discussion.
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