Determine price elasticity of perfectly elastic demand

A city government trying to pass an excise tax for that the economic burden would be borne strictly through the seller will succeed when this imposes a tax on a good for that the price elasticity of: (i) demand is unitarily elastic. (ii) supply is relatively elastic. (iii) demand is perfectly inelastic. (iv) supply is relatively inelastic. (v) demand is perfectly elastic.

Please choose the right answer from above...I want your suggestion for the same.

View Complete Question

Related Questions in Microeconomics

Q : Market power and inefficiency The

The widespread and unregulated exercise of monopoly power is probable to result within: (1) economic inefficiency because price exceeds marginal cost. (2) the value of national income being higher than under competition. (3) a politically more accepta

Q : Long run equilibrium price When

When Christmas tree farming is a decreasing cost industry and this firm is typical, in that case an increase in the market demand for Christmas trees will give in a long run equilibrium price: (1) greater than P1. (2) less

Q : Define Economics Briefly describe the

Briefly describe the term economics?

Q : Change in total revenue by selling

Marginal revenue, which is: (w) the change in total revenue from selling an additional unit of output. (x) the change in total revenue from hiring an additional unit of labor. (y) computed as TR/Q. (z) specified by change in Q / change in TR.

Q : Externalities and Deadweight Loss

Assume that the demand and supply for a product can be described by the following equations:Q= 1200-4PQ= -200+2P Producing the product results in marginal external damage of $8 per unit.a. What type of

Q : Adequate resources to escape a state of

When individuals or families have adequate resources [for example, employment opportunities] to escape a state of destitution, although choose not to, they are experiencing as: (1) involuntary poverty. (2) relative poverty. (3) a vicious cycle of pove

Q : Firm under monopoly A firm under

A firm under monopoly a price maker by the reasons shown below:A) The monopolist is a single seller of the product in market. Therefore it has full control over supply.B) There are no close replacements of the monopoly product,

Q : Relationship between MPS and multiplier

Relationship between MPS and multiplier:K=1/1-MPC = 1/MPS or inverse relationship between MPS and the size of multiplier.

Q : Consequences of rise in union wages Can

Can someone help me in finding out the right answer from the given options. The possible consequences of a rise in union wages comprise reduced: (1) Union employment and a refusal in non-union wages. (2) Shares of national income to the labor however growth of union e

Q : Describing the problem of Moral Hazard

When an NBA all-star bets in opposition to his team in games he plays after getting the money designated in his contract, he would be describing the problem of: (1) Default a version. (2) Over achievement. (3) Moral hazard. (4) Stupidity.

Discover Q & A

Leading Solution Library

Avail More Than 1415903 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1959567
Asked

3,689

Active Tutors

1415903

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment