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Sellers to pass along tax

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Given the same price elasticity of supply, sellers would be able to pass along the smalles portion of a 10%tax on which item?

Beef with a price elasticity of demand of .62

Pork with a price elasticity of demand of .73

Chicken with a price elasticity of demand of .32

Fish with a price elasticity of demand of .12

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Solution Preview

The smaller the elasticity of demand, the more the tax the consumers burden.

The intuition this is, a small price elasticity (in particular less than 1) ...

Solution Summary

The expert examines sellers to pass along tax to determine the same price elasticity of supply and sellers.

$2.19