Question
Assume 1/8 of a gram of marijuana costs $30, with $8 in various taxes added on. Asssuming price elasticity of demand for marijuana of -0.7.
Assume 1/8 of a gram of marijuana costs $30, with $8 in various taxes added on. Asssuming price elasticity of demand for marijuana of -0.7.
Determine the percentage change in quantity that would result from a price increase of $8.
Under what circumstances would prices rise by less than the full amount of tax?
How does price elasticity of demand affect tax revenues?
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Global Development And The Environment Perspectives On Sustainability
Authors: Joel Darmstadter
1st Edition
1317335686, 9781317335689
