What fraction of the incidence falls on consumers, Microeconomics

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What fraction of the incidence falls on consumers

Suppose a tax on beans of $0.05 per can is levied on firms. As a result of the tax, the equilibrium price increases from $0.20 to $0.22.

a. What fraction of the incidence falls on consumers? On firms?
b. Suppose the supply elasticity is 0.6. What must the demand elasticity be?

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Microeconomics: What fraction of the incidence falls on consumers

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Microeconomics: What fraction of the incidence falls on consumers

Reference No:- TGS039904

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : How much tax needs to be added to a pack

Q : Terms of optimal debt-to-equity ratio

Q : Explain aggregate demand or aggregate supply

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Q : What fraction of the incidence falls on consumers

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Request for Solution File

Ask an Expert for Answer!!

Microeconomics: What fraction of the incidence falls on consumers

Reference No:- TGS039904

Recent Questions Asked Microeconomics

Q : How much tax needs to be added to a pack

Q : Terms of optimal debt-to-equity ratio

Q : Explain aggregate demand or aggregate supply

Q : Cash flows of the project-project payback period

Q : What fraction of the incidence falls on consumers

Q : Summarize the preceding transactions

Q : What is the opportunity cost of taking trip

Q : Determining the cost of common equity

Q : Prepare journal entries in the accounting records

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