Examlex

Solved

Suppose in an Effort to Raise Tax Revenue,the State of Vermont

question 63

Essay

Suppose in an effort to raise tax revenue,the state of Vermont decides to legalize the sale of marijuana.The state will charge a tax of $50 per ounce on each sale,and the state claims that retailers will bear the entire burden of this tax.Draw a graph illustrating the situation where retail outlets would bear the entire tax burden of $50 per ounce of marijuana.Explain what would need to be true about the demand for marijuana for retailers to bear the entire burden of this tax,and if this would likely occur if marijuana sales were actually legalized.


Definitions:

Related Questions