Explain in terms of the underlying economic meaning

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Reference no: EM131005344

Suppose that the supply curve for gold is very steep (positively sloped, but almost vertical).

Would a $ T tax tend to have a relatively large or a relatively small effect upon the quantity exchanged in the market? Would there tend to be a relatively large or a relatively small effect upon the gross price paid by buyers? Upon the net price received by sellers?

Explain in terms of the underlying economic meaning.

Reference no: EM131005344

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