n a competitive market the supply is given S(p)= 4p, and the demand is D(p)=1/p^2. p = the product price. The government is thinking about adding a tax to the product. How large will the portion of the tax that falls on consumer be? (Tax incidence on consumers)

n a competitive market the supply is given S(p)= 4p, and the demand is D(p)=1/p^2. p = the product price. The government is thinking about adding a tax to the product. How large will the portion of the tax that falls on consumer be? (Tax incidence on consumers)

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section5.A: Appendix: Price Elasticity And Tax Incidence

Problem 1AQ

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In a competitive market the supply is given S(p)= 4p, and the demand is D(p)=1/p^2.
p = the product price.
The government is thinking about adding a tax to the product.

How large will the portion of the tax that falls on consumer be? (Tax incidence on consumers)

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