29. Suppose the absolute value of elasticity of demand for flat screen TVs is 3.00 and the elasticity of supply is 1.25. If there is a $50 tax imposed on all flat screen purchases, the amount of the tax burden that falls on consumers could be a. $20 b. $25 c. $30 d. $40 e. Cannot be determined with only this amount of information.

29. Suppose the absolute value of elasticity of demand for flat screen TVs is 3.00 and the elasticity of supply is 1.25. If there is a $50 tax imposed on all flat screen purchases, the amount of the tax burden that falls on consumers could be a. $20 b. $25 c. $30 d. $40 e. Cannot be determined with only this amount of information.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 3SQP

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