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Unformatted text preview: uantity (thousands of doses per day) Sales Tax and the Elasticity f D El ti it of Demand d
S + tax
Price incl P ludign ta ax(cents per pen) ) S 1.00
Seller pays entire tax Perfectly elastic demand 0.90 1 4 Quantity (thousands of marker pens per week) Sales Tax and the Elasticity of Supply
Pr rice incl. tax (dollars per bottle) 50 Seller pays entire tax 45 Perfectly inelastic supply D 100 Quantity (thousands of bottles per week) Sales Tax and the Elasticity of Supply
Price inc tax (cents per pound) cl. r Perfectly Elastic Supply
Buyer pays entire ti tax S + tax 10 S D...
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This document was uploaded on 03/13/2014.
- Winter '13