Question
My answer is a)$0.67, however, the solution says the answer is b.)$0.40. How do I solve this? Suppose that there is a tax of $1
My answer is a)$0.67, however, the solution says the answer is b.)$0.40.
How do I solve this?
Suppose that there is a tax of $1 per unit, and the elasticity of supply is 3 and the elasticity of demand is 2 (in absolute value). How much of the $1 tax is paid by sellers?
a. $0.67
b. $0.40
c. $0.75
d. $0.60
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Economic Change In Asia Implications For Corporate Strategy And Social Responsibility
Authors: M Bruna Zolin, Bernadette Andreosso O'Callaghan, Jacques Jaussaud
1st Edition
1317286650, 9781317286653
