If the supply curve is perfectly elastic and the demand curve is downward sloping, what is the

Question:

If the supply curve is perfectly elastic and the demand curve is downward sloping, what is the effect of a $\$ 1$ specific tax collected from producers on equilibrium price and quantity, and what is the incidence on consumers? Why?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

See More Books

Question Posted: Mar 15, 2024 04:00 AM

See More Questions

What effect does a $1 specific tax have on equilibrium price and quantity, and what is the incidence on consumers, if the following is true: a. The demand curve is perfectly inelastic. b. The demand...
In a free market economy, the demand curve is the graph of the function D that represents the demand for a specific product by the consumers in the economy at price q. It is not surprising that the...
Examine changes in price and quantity caused when governments take actions to modify market outcomes. In a perfectly competitive market, the equilibrium price and quantity represent the most...
The people on Coral Island buy only juice and cloth. The CPI market basket contains the quantities bought in 2016. The average household spent $60 on juice and $30 on cloth in 2016 when the price of...
Suppose the following demand exists for iPhone apps: (a) At $9, what quantity is demanded? (b) If the price drops to $6, what quantity is demanded? (c) Is demand elastic or inelastic in that price...
Complete this table for H2O: Phase description T C P kPa u, kJ/kg 400 1450 Saturated vapor 220 190 2500 4000 3040
Identify the most appropriate approach and then design. Provide a rationale as to why this approach and design would be most appropriate. Develop a hypothetical research scenario that would...
Presented below are selected accounts of Aramis Company at December 31, 2012. The following additional information is available.1. Inventories are valued at lower-of-cost-or-market using LIFO.2....
Two large parallel plates are separated by a 0.015-m gap. The plates are connected to the terminals of a 12-V battery, which remains connected. a) What is the strength of the electric field in the...
If the short-run supply curve for fresh fruit is perfectly inelastic and the demand curve is a downward-sloping straight line, what is the effect of an ad valorem tax on equilibrium price and...
Show mathematically the effects on the equilibrium price and quantity of corn from a specific tax of $t=\$ 2.40$ collected from suppliers, as illustrated in panel a of Figure 3.6. Figure 3.6:- (a)...
First Law of Motion and Einstein's Special Theory of Relativity differ concerning a particle's behavior as its velocity approaches the speed of light c. In the graph, functions N and E represent the...
Simplify the following expression. x3 dx dp [ 2 5P
Write a C++ program to help suggest outfits for you to wear, with a randomized suggestion of a clothing combo for top/bottom depending on the weather (for example, a blue long-sleeve shirt and jeans...
This assignment is based on the article "How One Stupid Tweet Blew Up Justine Sacco's Life" by Jon Ronson (posted under assignments tab on FOL). Read the article carefully and complete your...
Use the episilon delta definition to establish the following limits: 1.) limx = 9 x-3 2.)lim, (x+x- 2) = x--1 3.)limx = 8 x-2 - 4.) lim (x + 2x - 1) = 2 x1 2 5.) lim (2x + x + 1) = 29 x-4
What is the goods trade balance? (Numeric calculations required - Show your work) . What is the current account balance?(Numeric calculations required - Show your work) Does the financial account...
A coil with inductance L = 0.70H and active resistance r = 20 is connected in series with an inductance-free resistance R. An alternating voltage with effective value V = 220 V and frequency w = 314...
The Ranch 888 Noodle Company sells two types of dried noodles:ramen, at $6.50 per box, and chow fun, at $7.70 per box. So farthis year, the company has sold a total of 110,096 boxes ofnoodles,...
1. Fashion and Prices. You are in the market for a used car and have narrowed your options to two types of cars, type F and type P. According to Consumer Reports, the two types of cars have roughly...
1. Fashion and Prices. You are in the market for a used car and have narrowed your options to two types of cars, type F and type P. According to Consumer Reports, the two types of cars have roughly...
1. Fashion and Prices. You are in the market for a used car and have narrowed your options to two types of cars, type F and type P. According to Consumer Reports, the two types of cars have roughly...
please send help to answer this question below. need the answer within 30min please. Knuth-Morris-Pratt's (KMP) algorithm preprocesses the pattern to find matches of prefixes of the pattern with the...
Use a calculator or program to compute the first 10 iterations of Newton's method when they are applied to the following function with the given initial approximation. f(x)= In (x+2)-3; x0 = 18.1 k...
1. The navigator of an aircraft, P, flying at an altitude of 9.5 km observes 2 ships, 8 R and Q, on the sea below. Use the information in the diagram to determine the distance between the ships. sion...

If the supply curve is perfectly elastic and the demand curve is downward sloping, what is the

Question:

Step by Step Answer:

i Determine the equilibrium in the absence of a tax Before the tax the perfectly elastic supply curv...View the full answer

Microeconomics

Students also viewed these Business questions