Answered: Incidence of tax on consumer is 1/3,…

Incidence of tax on consumer is 1/3, demand elasticity is -0.1, price is 10, quantity is 5, what is slope of supply curve.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...

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Question

Incidence of tax on consumer is 1/3, demand elasticity is -0.1, price is 10, quantity is 5, what is slope of supply curve.

Value of other constants is 30 ∂Q/∂P= -0.8, ∂Q/∂Y= 0.6, ∂Q/∂Ps= 0.1, P= 20 Y = 20 when Q= 100 calculate Ps (Ps Is price of substitute)

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