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Exercise 9 Among the tax proposals regularly considered by Congress is an additional tax on distilled liquors. The tax would not apply to beer. The price elasticity of supply of liquor is 4 ​, and the price elasticity of demand is negative 0.4 . The​ cross-elasticity of demand for beer with respect to the price of liquor is 0.1. If the new tax is​ imposed, who will bear the greater burdenlong dash liquor suppliers or liquor​ consumers? Liquor consumers pay nothing percent and liquor suppliers pay nothing percent of the tax. ​(Enter your responses rounded to one decimal place.​) Enter your answer in the edit fields and then click Check Answer. 1 part remaining
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Exercise 9 Among the tax proposals regularly considered by Congress is an additional tax on distille...
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