What percent of the tax burden will be born by consumers

Reference no: EM133621019

ASSIGNMENT:

The elasticity of demand for tobacco products is 0.8 (in absolute value), whereas the elasticity of supply is 1.2.

If a tax is levied on the production of tobacco products, what percent of the tax burden will be born by consumers? (Your answer should be a number between 0 and 100, for example, if the answer is 37%, write 37 instead of 0.37; no digits are needed).

Reference no: EM133621019

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