Quantity labour demanded and hired unemployed spend

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Unformatted text preview: ployed spend more search time contribute to high unemployment for unskilled, younger workers The Sales Tax – Supplier Pays S + tax S 110 $10 tax Price including tax (dollars per player) 105 100 Tax revenue Deadweight Deadweight loss loss 95 DA 3 4 5 6 Quantity (thousands of CD players per week) The Sales Tax – Consumer Pays The S 110 Price including tax (dollars per player) 105 100 Tax revenue Deadweight Deadweight $10 tax loss loss 95 3 4 DA D, less tax 5 6 Quantity (thousands of CD players per week) Price including taX(dollars per dose) Sales Tax and the Elasticity of Demand Elasticity S + tax Buyer pays entire tax S 2.20 Perfectly inelastic demand 2.00 D 100 Quantity Quantity (th...
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This document was uploaded on 03/13/2014.

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