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The demand for milk is represented by: P= -0.5Qd + 9.3 The supply of milk is represented by: P= 1.20s + 4.2

The demand for milk is represented by: P= -0.5Qd + 9.3 The supply of milk is represented by: P= 1.20s + 4.2

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter5: Elasticity
Section: Chapter Questions
Problem 30CTQ: In a market where the supply curve is perfectly inelastic how does an excise tax affect the price...
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The demand for milk is represented by: P= -0.5Qd + 9.3 The supply of milk is represented by: P = 1.2Qs + 4.2 Quantities are in millions of gallons per week. Now suppose that the government levies a $0.44 excise tax per gallon on the sellers. Calculate the part of the tax bome by the consumers in this market and enter using 2 decimal places.
Transcribed Image Text:The demand for milk is represented by: P= -0.5Qd + 9.3 The supply of milk is represented by: P = 1.2Qs + 4.2 Quantities are in millions of gallons per week. Now suppose that the government levies a $0.44 excise tax per gallon on the sellers. Calculate the part of the tax bome by the consumers in this market and enter using 2 decimal places.
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