Use math to show that, as the supply curve at the equilibrium becomes nearly perfectly elastic, the
Question:
Use math to show that, as the supply curve at the equilibrium becomes nearly perfectly elastic, the entire incidence of the tax falls on consumers.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (9 reviews)
By dividing both the numerator and the d...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
In our discussion of economic versus statutory incidence, the text has focused primarily on the incidence of taxes. This exercise explores analogous issues related to the incidence of benefits from...
-
The demand curve Q = A/p, where A is a positive constant, has the property that the elasticity of demand is = -1 everywhere. a. Use math to show that the revenue is the same at any given point on...
-
In a perfectly competitive market, the inverse demand function is p = 50 Q. Market supply, Q s , is perfectly elastic at a price of 40, because each firm has a constant marginal cost MC = 40. a....
-
Explain why an economic tradeoff exists between the number of trays and the reflux ratio.
-
Give two everyday examples of objects that are not in static equilibrium.
-
> Question 14 1 pts You are evaluating a call option on PG with a strike of $277 and 156 days to expiration. You calculate the option's N(D1) as 0.95 and the N(d2) as 0.66. The time to expiration is...
-
Confirm that (9.63) is indeed true. (9.63)
-
The deepest point in the ocean is in the Mariana Trench, about 11 km deep. The pressure at this depth is huge, about 1.13 - 108 N/m2. (a) Calculate the change in volume of 1.00 m3 of seawater carried...
-
thank you in advance The following information is related to the sole proprietorship of Patricia Johnson, attorney. Legal service revenue-2022 $335,000 Total expenses-2022 221,000 Assets, January 1,...
-
Ellipses Corp is a small business that operates in Herndon, VA. The company is located at10 Period Lane, Herndon, VA 20170. Its federal Employer Identification Number is 77-7777777, and its...
-
In 2012, the governors of several livestockproducing states asked the U.S. Environmental Protection Agency (EPA) to suspend federal ethanol mandates due to a major drought (Amanda Peterka, EPA Denies...
-
A constant elasticity supply curve, Q = Bp, intersects a constant elasticity demand curve, Q = Ap , where A, B, , and are constants. What is the incidence of a $1 specific tax? Does your answer...
-
With regard to bid and ask prices on a Canada bond, is it possible for the bid price to be higher? Why or why not?
-
What is judgement sampling?Explain with a suitable example.
-
What is convenience sampling?Explain with a suitable example.
-
Customer Distribution Channels (all amounts in thousands of U.S. Dollars) Wholesale Customers Retail Customers Total Total N. America S. America Total Wholesale Wholesaler Wholesaler Retail Green...
-
MA Assignment 3 Motor Tyres manufactures one size of tyre in each of its production lines. The following information relates to one production line for the most recent period. The company uses the...
-
Describe an operational unit within an organization, and define the mission statement, goals, and operational objectives for the unit. The operational unit should be an organization they would like...
-
Let ''(x) be continuous. Show that lim h0 f(x + h) 2f(x) + f(x - h) h - = f'(x).
-
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...
-
Firm 1 and Firm 2 use the same type of production function, but Firm 1 is only 90% as productive as Firm 2. That is, the production function of Firm 2 is q2 = f(L, K), and the production function of...
-
Firm 1 and Firm 2 use the same type of production function, but Firm 1 is only 90% as productive as Firm 2. That is, the production function of Firm 2 is q2 = f(L, K), and the production function of...
-
In a manufacturing plant, workers use a specialized machine to produce belts. A new machine is invented that is laborsaving. With the new machine, the firm can use fewer workers and still produce the...
-
*please calculate irr in excel
-
Which of the following would not be a period cost? Research and development Direct materials Office supplies Advertising costs
-
\ table [ [ Activity Cost Pool,Activity Measure,Total Cost,Total Activity ] , [ Machining , Machine - hours,$ 3 3 0 , 0 0 0 , 1 5 , 0 0 0 MHs ] , [ Machine setups,Number of setups,$ 3 0 0 , 0 0 0 , 5...
Study smarter with the SolutionInn App