The government has decided to impose a new excise tax on


The government has decided to impose a new excise tax on the sale of cigarettes. suppose that we know the demand for cigarettes is relatively inelastic, but the supply is relatively eleastic. Which group, consumers or producers, will e affected more by the new tax. ( in other words, which group has a larger tax burden when comparing the prices each group pays or receives before and after the tax.

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Business Economics: The government has decided to impose a new excise tax on
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