The incidence of a unit tax depends on the elasticities of supply and demand. With appropriate diagram, explain the tax incidence when supply is perfectly inelastic (assume that demand curve is elastic)

The incidence of a unit tax depends on the elasticities of supply and demand. With appropriate diagram, explain the tax incidence when supply is perfectly inelastic (assume that demand curve is elastic)

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 15E

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