The tax authorities of Mabalingwe, an imaginary country, have decided to impose a 99% tax on alcohol sales to reduce domestic abuse cases in the country. The tax is payable to the government on purchase of the product. Describe who bears the cost of this tax and, secondly, explain what drives this outcome

The tax authorities of Mabalingwe, an imaginary country, have decided to impose a 99% tax on alcohol sales to reduce domestic abuse cases in the country. The tax is payable to the government on purchase of the product. Describe who bears the cost of this tax and, secondly, explain what drives this outcome

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 10E

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