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Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1 per frame levied on picture frames will increase the price paid by buyers of picture frames by:
a. less than $0.50.
b. $0.50.
c. between $0.50 and $1.
d. $1.
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Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is...
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