Nbspsuppose that an excise tax of 280 per unit is charged


 Suppose that an excise tax of $2.80 per unit is charged to the buyers in the market of part b. Find the effect on the equilibrium quantity traded and market price. Find the effective (after-tax) price buyers pay. Compare the buyers’ burden from the tax to the sellers’ burden. Explain why the burdens are distributed the way they are and compare the burdens to those in part c.

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Business Economics: Nbspsuppose that an excise tax of 280 per unit is charged
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