Say the quantity supplied of corn is the same no matter the price of corn. If the government passes a sales tax on consumers of corn, the burden of a tax falls entirely on the seller the dead weight loss will be extremely high the burden of a tax falls entirely on the buyer the burden of a tax is shared equally

Say the quantity supplied of corn is the same no matter the price of corn. If the government passes a sales tax on consumers of corn, the burden of a tax falls entirely on the seller the dead weight loss will be extremely high the burden of a tax falls entirely on the buyer the burden of a tax is shared equally

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In the market for candy, researchers have estimated the following demand and supply curves. Demand: P= 8 - Q/100 Supply: P= (3Q)/700 If the government imposes an excise tax of $0.50 per unit. What is tax revenue out of this tax? (Remember that the tax does not change the demand and supply curves).
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