Question: A constant elasticity supply curve, Q = Bp, intersects a constant elasticity demand curve, Q = Ap , where A, B, , and

A constant elasticity supply curve, Q = Bpη, intersects a constant elasticity demand curve, Q = Ap^ε , where A, B, η, and ε are constants. What is the incidence of a $1 specific tax? Does your answer depend on where the supply curve intersects the demand curve? Why?

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