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Business, 19.10.2021 14:40 joseroblesrivera123

Consider two countries where the proposed tax on online ads will be imposed. Suppose demand for online ads in Country A is more elastic than demand for online ads in Country B. Assume that the elasticity of supply is about the same for both countries. Finally, assume the price and quantity of advertisements sold in both countries are about the same initially. Which country will collect more revenue from the ad tax? Tax revenue will be greater in Country B. greater in Country A. about the same in both countries. In which country will ad providers pay a smaller share of the tax? Ad providers' share of the tax burden will be about the same in both countries. will be smaller in Country A. will be smaller in Country B.

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Consider two countries where the proposed tax on online ads will be imposed. Suppose demand for onli...
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