Show a diagram who bears how much of excess burden


Assume that the demand for gasoline is inelastic and the supply is relatively elastic. The government imposes a sales tax on gasoline. The tax revenue is used to fund research into clean fuel alternatives to gasoline, which will improve the air we all breathe. Who bears more of the burden of this tax? Show a diagram who bears how much of the excess burden.

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Microeconomics: Show a diagram who bears how much of excess burden
Reference No:- TGS061276

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