Show how much tax is collected


Problem

Suppose a tax is imposed on a good with a perfectly elastic supply curve.

a. Who pays the tax?
b. Using demand and supply curves, show how much tax is collected.
c. How would this tax revenue change if the supply curve becomes less elastic?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Show how much tax is collected
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