uppose demand is represented by P = 100 - 2Q, and supply is represented by P = 5 + 3Q. If the government imposes a $5 per unit tax, to be collected from the sellers, what is the price elasticity of demand between the pre- and post-tax equilibriums?     0.5     0.63     1     1.7

Economics (MindTap Course List)
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ISBN:9781337617383
Author:Roger A. Arnold
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Chapter19: Elasticity
Section19.4: The Relationship Between Taxes And Elasticity
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Suppose demand is represented by P = 100 - 2Q, and supply is represented by P = 5 + 3Q. If the government imposes a $5 per unit tax, to be collected from the sellers, what is the price elasticity of demand between the pre- and post-tax equilibriums?

   

0.5

   

0.63

   

1

   

1.7

 

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