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(Solved): An excise tax is imposed on the product produced by an increasing cost competitive industry. In abso ...



An excise tax is imposed on the product produced by an increasing cost competitive industry. In absolute terms the price elasticity of supply is greater than the price elasticity of demand. This means that Group of answer choices consumers bear a greater burden of the tax than do sellers. sellers bear a greater excess burden of the tax than do consumers. consumers pay a higher price, but output is not reduced. there is no excess burden from the tax.



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