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.

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

2nd Edition

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.

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