Consider the market for rubber bands. a.If this market has very elastic supply and very inelastic deman, how would the burden of a tax on rubber bands be shared between consumers and producers? use the tools of consumer surplus and producer surplus in your answer b. If this market has very inelastic supply and very elastic demand, how would the burden of a tax on rubber bands be shared between consumers and producers? Contrast your answer with your answer to part(a)
Consider the market for rubber bands. a.If this market has very elastic supply and very inelastic deman, how would the burden of a tax on rubber bands be shared between consumers and producers? use the tools of consumer surplus and producer surplus in your answer b. If this market has very inelastic supply and very elastic demand, how would the burden of a tax on rubber bands be shared between consumers and producers? Contrast your answer with your answer to part(a)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Application: The Cost Of Taxation
Section: Chapter Questions
Problem 3PA
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Consider the market for rubber bands.
a.If this market has very elastic supply and very inelastic deman, how would the burden of a tax on rubber bands be shared between consumers and producers? use the tools of
b. If this market has very inelastic supply and very
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