) You are still a government official. But now suppose you are taxing a good with...

) You are still a government official. But now suppose you are taxing a good with elastic supply such as Uber drivers. a)Who will end of paying much of the tax – the consumers or the drivers?b)Why might imposing a tax on Uber drivers raise far less revenue than anticipated?

Expert Solution

Rahul Sunny answered 1 year ago

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Suppose a closed economy with no government spending or taxing initially.

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Question 6 Unsaved Suppose a closed economy with no government spending or taxing initially. Suppose also...

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Even when there are no externalities in a market, a government may still tax a good...

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