What is the effect of a $1 specific tax collected from producers on equilibrium price and quantity if demand is perfectly elastic? Price is unchanged and quantity decreases What is the incidence on consumers? Explain. V price sensitive. The incidence of the tax that falls on consumers is percent (enter a numeric response using an integer) because consumers are

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A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

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A: Demand : D(p) =q=169-9pSupply : S(p) =q=45+11pAt equilibrium point, demand = supply

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A: Inverse Demand: Pd = 26000000 - 1/3q2  Inverse Supply: Ps = 1000000+3750q

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A: Correct answer "supply; upward".