You are given: Q=50-1.25P, where Q is quantity and P is price. Supply is given by...

 

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You are given: Q=50-1.25P, where Q is quantity and P is price. Supply is given by Q = 5P. (111) The government imposes a sales tax of 0.10. What proportion of the tax is borne by consumers? You are given: Q=50-1.25P, where Q is quantity and P is price. Supply is given by Q = 5P. (111) The government imposes a sales tax of 0.10. What proportion of the tax is borne by consumers?

Answer rating: 100% (QA)

Heres how to determine the proportion of the tax borne by consumers 1 Find the equilibrium pric... View the full answer