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Business, 20.03.2020 09:43 straightbarz5916

Suppose that the (absolute value) of the elasticities of demand for apples, bananas, and peaches are 0.9, 1.6, and 0.8, respectively. Assume that the supply curves for these goods are identical and that an identical tax is levied on each good. Rank the products from highest to lowest in terms of the deadweight loss caused by the tax.

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Suppose that the (absolute value) of the elasticities of demand for apples, bananas, and peaches are...
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