What is the effect of a $1 specific tax on equilibrium price and quantity if demand is
Question:
What is the effect of a $1 specific tax on equilibrium price and quantity if demand is perfectly elastic and supply is perfectly inelastic?
What is the incidence on consumers? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (10 reviews)
If the demand curve is perfectly elastic horizontal ...View the full answer
Answered By
ALBANUS MUTUKU
If you are looking for exceptional academic and non-academic work feel free to consider my expertise and you will not regret. I have enough experience working in the freelancing industry hence the unmistakable quality service delivery
4.70+
178+ Reviews
335+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
What is the effect of a minimum wage law in a monopsony labor market?
-
What is the effect of external factors on earnings quality?
-
What is the effect of capitalizing interest costs associated with self-constructed assets on reported income summed over all the periods of the life of a given self-constructed asset, from building...
-
A process stream is heated using a shell and tube heat exchanger. The exit temperature is controlled by adjusting the steam control valve shown in figure. During an open-loop experimental test, the...
-
Consider a race between the following three objects: object 1, a disk; object 2, a solid sphere; and object 3, a hollow spherical shell. All objects have the same mass and radius. (a) Rank the three...
-
A plane, harmonic, linearly polarized lightwave has an electric field intensity given by while traveling in a piece of glass. Find (a) The frequency of the light. (b) Its wavelength. (c) The index of...
-
When calculating WACC, if we wanted to abide by common practice, we would: a. Always use nominal rates b. Always use effective rates c. Use nominal rates on bonds only d. Use nominal rates on stock...
-
How many hours per week do you spend on e-mail? In 2010, the GSS included a question on number of hours spent on e-mail. Data are presented here for a sample of 99 men and women. E-mail hours per...
-
6. The graph shows how much Melinda is paid for each hour she babysits. Melinda's Babysitting Pay (dollars) 54 48 42 36 18 12 Which equation best describes the relationship shown in the graph Ay=6x...
-
Richard chooses technique 0 and 2 requiring 10+10-20 efforts and provising 10+11=21 benefits. Hence, 21 is returned as the output Example 2: input1: 3 input2: (10,10,10,10) input3: (10,11,12,15)...
-
What is the effect of a $1 specific tax on equilibrium price and quantity if supply is perfectly inelastic? What is the incidence on consumers? Explain.
-
If the inverse demand function is p = a - bQ and the inverse supply function is p = c + dQ, show that the incidence of a specific tax of t per unit falling on consumers is b/(b + d) = /( - ).
-
For the following exercises, solve for the unknown side. Round to the nearest tenth. 5 88
-
With reference to one or two organization (s) that you have studied, in this case, McDonald's, evaluate the importance of innovation in starting a new business. [20]
-
A review of the personnel records of a small corporation has revealed the following information about the number of sick days taken per year and the corresponding probabilities. A probability...
-
Evaluate the new product development process and develop appropriate suggestions to improve the process in terms of speed to market. (ii) Discuss the importance of sustainability, corporate social...
-
What are 2 of the 5 guidelines for using viewpoints? Explain what their importance is for an EA project and its stakeholders.
-
Ramsville s new CEO, Zach G . Evan, had developed and championed Ramsville s new Lean Initiative not long after taking over. After achieving substantial improvements in cost , lead time, and quality...
-
Name five kinds of responsibility centres.
-
Choose two matrices A and B with dimension 2 x 2. Calculate det A, det B, and det (AB). Repeat this process until you are able to discover how these three determinants are related. Summarize your...
-
Gail works in a flower shop, where she produces 10 floral arrangements per hour. She is paid $ 10 an hour for the first eight hours she works and $ 15 an hour for each additional hour she works. What...
-
The only variable input a janitorial service firm uses to clean offices is workers who are paid a wage, w, of $ 10 an hour. Each worker can clean four offices in an hour. Use math to determine the...
-
A firm has a Cobb- Douglas production function, q = ALaK, where a + < 1. On the basis of this information, what properties does its cost function have? For example, a U. S. chemical firm has a...
-
abc equipment purchased equipment on 10/1/2023 that costs 12000 by issuing note payable. note is a three years 8% note and equipment will last in 5 years with no salvage value. calculate the ajusting...
-
Generally, the receipt of corporate bond interest is more valuable than preferred dividends to corporate investors. True or False
-
ABC Corporations Certificate of Incorporation was revoked by SEC for failure to comply with reportorial requirements. It has no creditor and its lone asset is a parcel of land. Out of 9 directors,...
Study smarter with the SolutionInn App