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How do excise taxes affect the supply 2024?

Amelia Cooper | 2023-05-07 23:59:14 | page views：1866
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Mason Hall

Works at BioHealth Labs, Lives in Boston, MA.
- Producers have to reduce the price they charge consumers to get them to buy their product given the new tax. ... The tax incidence will depend on the price elasticities of supply and demand. 1. When the price elasticity of demand is higher than the price elasticity of supply, an excise tax falls mainly on producers.
2023-05-08 23:59:14
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Isabella Patel

QuesHub.com delivers expert answers and knowledge to you.
- Producers have to reduce the price they charge consumers to get them to buy their product given the new tax. ... The tax incidence will depend on the price elasticities of supply and demand. 1. When the price elasticity of demand is higher than the price elasticity of supply, an excise tax falls mainly on producers.
Econ 101: Principles of Microeconomics - Chapter 7: Taxes
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