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Unformatted text preview: amount of the tax Tax shared between the tax and the sellers If the tax is only on the sellers than the willingness to sell doesn’t change but the price goes up, it is a parallel shift The Outcome Is the Same in Both Cases! The effects on P and Q , and the tax incidence are the same whether the tax is imposed on buyers or sellers!...
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This note was uploaded on 11/16/2011 for the course ECON 1011 taught by Professor Irenefoster during the Fall '11 term at GWU.
- Fall '11