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Suppose Automobile Salesmen Are Required to Pay a $1000 Tax

Question 48

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Suppose automobile salesmen are required to pay a $1000 tax per car sold.Is it likely that the auto salesmen will bear the entire burden of this tax? Why or why not? Would it matter if the demanders were legally required to pay the tax? Explain in detail your answer.

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Assuming the supply curve is not perfect...

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