Suppose that demand is perfectly elastic and supply is a basic upward sloping curve (so neither perfectly inelastic or elastic). Graphically, show how many tax burden that consumers and producers will get when the government taxes the consumers.

Suppose that demand is perfectly elastic and supply is a basic upward sloping curve (so neither perfectly inelastic or elastic). Graphically, show how many tax burden that consumers and producers will get when the government taxes the consumers.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Suppose that demand is perfectly elastic and supply is a basic upward sloping curve (so neither
perfectly inelastic or elastic). Graphically, show how many tax burden that consumers and producers
will get when the government taxes the consumers.

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