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how can we work this problem "At equilibrium price an item is selling for $30 a unit .At this price , consumers demand 100 units.If government imposes an ad valorem tax of 5% the equilibium quantity demande and supplied will fall to 90 units and the price will rise to $31. How much of the tax is backward shifted.

Microeconomics, Economics

  • Category:- Microeconomics
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