19. Assume a perfectly competitive market currently at long-run equilibrium with P = $10 and Q = 1,000, 000. At P = $10, short-run elasticity of demand is 1.5 and short-run elasticity of supply is 2. If a $1 per unit tax, payable by the seller, is introduced, what will be the the short-run market price? A. $10.00, B. Between $10.00 and $10.50. C. $10.50 D Between $10.50 and $11.00. Powered.by E. $11.00

19. Assume a perfectly competitive market currently at long-run equilibrium with P = $10 and Q = 1,000, 000. At P = $10, short-run elasticity of demand is 1.5 and short-run elasticity of supply is 2. If a $1 per unit tax, payable by the seller, is introduced, what will be the the short-run market price? A. $10.00, B. Between $10.00 and $10.50. C. $10.50 D Between $10.50 and $11.00. Powered.by E. $11.00

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 11PA: Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2...

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