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goblinko [34]
4 years ago
15

"Assuming the market of soda has a regular downward sloping" demand curve and upward sloping supply curve, the tax will ________

the price paid by buyers and ________ the price received by sellers.
Business
1 answer:
Scrat [10]4 years ago
5 0

Answer:

"Assuming the market of soda has a regular downward sloping" demand curve and upward sloping supply curve, the tax will  <u>be added to</u>  the price paid by buyers and <u>not the price received by</u>  the price received by sellers.

Explanation:

When demand is  takes a downward slope it simply means the good is not sort after  in the open market.When Supply curve takes an upward curve it means their is a great  availability of production resources.

Tax incidence goes alongside the above theory,in cases  where demand is low ,the tax will will be imposed on the buyer .But in the case where demand is high the tax is usually imposed on the producer.

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