Suppose that there is a tax of 1 per unit and the
Suppose that there is a tax of $1 per unit, and the elasticity of supply is 3 and the elasticity of demand is 2 (in absolute value). How much of the $1 tax is paid by sellers?
A)$0.60B)$0.40C)$0.75D)$0.67 what is the correct answer?
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