When producers will bear the full economic burden of the tax

Reference no: EM13204083

Assume that demand for iPhones is given by the following: p = 500 - 0.25Qd . If supply is given by Qs = 1000 and the government imposes a tax of 50 on iPhones that must be paid by sellers then? Producers will bear the full economic burden of the tax but how come there is no deadweight loss?

Reference no: EM13204083

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