Business, 21.02.2020 19:19 kountryboye25
Assume that the government imposes an excise tax on the consumption of a good. The tax will have the least impact on the market equilibrium quantity for which of the following combinations of the price elasticities of demand and supply?
a. Absolute value of elasticity of demand: 4, Elasticity of supply:4
b. Absolute value of elasticity of demand: 4, Elasticity of supply: 0.5
c. Absolute value of elasticity of demand: 1, Elasticity of supply: 1
d. Absolute value of elasticity of demand: 0.5, Elasticity of supply: 4
e. Absolute value of elasticity of demand: 0.5, Elasticity of supply: 0.5
Answers: 2
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Assume that the government imposes an excise tax on the consumption of a good. The tax will have the...
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