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Author Question: The demand for insulin is quite inelastic. The demand for Pepsi is quite elastic. Suppose the ... (Read 93 times)

Pineapplelove6

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on: May 24, 2019
The demand for insulin is quite inelastic. The demand for Pepsi is quite elastic. Suppose the elasticity of supply for insulin is the same as the elasticity of supply for Pepsi. If a $0.20 tax was imposed on each of these goods (holding everything else constant), which consumers would pay more of the tax?
◦ the Pepsi consumers
◦ the insulin consumers
◦ There would be no difference in the amount of tax paid by the consumers.
◦ More information is needed to determine which consumers pay more of the tax.
◦ The premise of the question is wrong because the elasticity of demand and the incidence of a tax are not related.
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
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Marked as best answer by Pineapplelove6 on May 24, 2019

ghepp

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Reply #1 on: May 24, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Pineapplelove6

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Reply #2 on: May 24, 2019
Thanks


ghepp

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Reply #3 on: May 24, 2019
Welcome :)


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