What is the effect of a $1 specific tax collected from producers on equilibrium price and quantity if demand is perfectly elastic? Price is unchanged and quantity decreases What is the incidence on consumers? Explain. V price sensitive. The incidence of the tax that falls on consumers is percent (enter a numeric response using an integer) because consumers are
What is the effect of a $1 specific tax collected from producers on equilibrium price and quantity if demand is perfectly elastic? Price is unchanged and quantity decreases What is the incidence on consumers? Explain. V price sensitive. The incidence of the tax that falls on consumers is percent (enter a numeric response using an integer) because consumers are
Chapter6: Elasticities
Section: Chapter Questions
Problem 8P: If the elasticity of demand for hamburgers equals 21.5 and the quantity demanded equals 40,000,...
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