Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 12, 2024

In a perfect competition market; current price is $50.00, the quantity is 10,000, the excise tax $4.00, and the price elasticity of supply is 2.5.

In a perfect competition market; current price is $50.00, the quantity is 10,000, the excise tax $4.00, and the price elasticity of supply is 2.5. How do you find the price with tax in place when the price elasticity of demand is perfectly elastic (horizontal demand curve)?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Exploring Economics

Authors: Robert L Sexton

5th Edition

978-1439040249, 1439040249

Students also viewed these Economics questions

Question

★★★★★

Determine the masses of dry air and the water vapor contained in a 90-m3 room at 93 kPa, 26oC, and 50 percent relative humidity.

Answered: 1 week ago

Question

★★★★★

An incumbent can commit to producing a large quantity of output before the potential rival decides whether to enter. The incumbent chooses whether to commit to produce a small quantity, qi, or a...

Answered: 1 week ago

Question

★★★★★

4. In Exercise 3, are the random variables X and Y independent?

Answered: 1 week ago

Question

★★★★★

The Western Pipe Company has the following capital section in its balance sheet. Its stock is currently selling for $6 per share. Common stock (50,000 shares at $2 par) .......$ 100,000 Capital in...

Answered: 1 week ago

Question

★★★★★

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe return of 6%. The...

Answered: 1 week ago

Question

★★★★★

ECO 221 Fall Semester 2023 Reflection Paper I . Saved V Search Tam Design Layout References Mailings Review View Help What five different things you have been exposed to and learned in this course...

Answered: 1 week ago

Question

★★★★★

4.1 A centrifugal pump is used to pump water from one tank to another. The difference in height between these tanks is 140m. What is the theoretical minimum power required to pump 15,000kg of water...

Answered: 1 week ago

Question

★★★★★

Kiera has reached a solution and has implemented her plan to minimize angry outbursts during group time. Using the Five-Step Learning Cycle, what next step should Kiera take? Group of answer choices...

Answered: 1 week ago

Question

★★★★★

The location is especially enticing because the State of Georgia offers attractive tax incentives to investors who fund films produced in the state: sales tax exemption plus an across the board flat...

Answered: 1 week ago

Question

★★★★★

Question 1: (a) Design a differentiator (Figure-1) to differentiate an input signal that varies in frequency from 20Hz to about 1KHz. Clearly provide full details of all the design steps and...

Answered: 1 week ago

Question

★★★★★

VUCA-type (volatility, uncertainty, complexity, ambiguity) contemporary contexts and dynamics (for example COVID, financial pressures/economic crisis/ labour market shortages/geo-political tensions)...

Answered: 1 week ago

Question

★★★★★

4 Derrick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his division's return on investment (ROI), which has been above 25% each of the last...

Answered: 1 week ago

Previous Question Next Question