Question:
Suppose the price elasticity of demand ($e_D $) is β 1/5 and the price elasticity of supply ($e_s$ ) is 2/5 . Then, the incidence of a specific (or unit) tax on the firms is equal to
Suppose the price elasticity of demand ($e_D $) is β 1/5 and the price elasticity of supply ($e_s$ ) is 2/5 . Then, the incidence of a specific (or unit) tax on the firms is equal to
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Updated On: Oct 1, 2024
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