How much of the $1 tax is paid by sellers

Reference no: EM13739346

Suppose that there is a tax of $1 per unit, and the elasticity of supply is 3 and the elasticity of demand is 2 (in absolute value). How much of the $1 tax is paid by sellers?

A)
$0.60
B)
$0.40
C)
$0.75
D)
$0.67 what is the correct answer?

Reference no: EM13739346

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