As a result of the tax the equilibrium price increases from


Suppose a tax on beans of $0.05 per can is levied on firms. As a result of the tax, the equilibrium price increases from $0.20 to $0.22. What fraction of the incidence falls on consumers? On firms? Suppose the supply elasticity is 0.6. What must the demand elasticity be.

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Econometrics: As a result of the tax the equilibrium price increases from
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