Consider a good whose own price elasticity of demand is -1.0 and price elasticity of supply is 0.5. the fraction of a specific tax that is borne by producers is

0.75

Explanation:

Specific taxes are indirect taxes where a fixed sum is paid per unit sold.

To calculate the specific tax in this case, we solve as follows;

We calculate the effect of the price elasticity of both the demand and supply

Specific Tax = (0.5-1.0) * (-1.0-0.5) Simplify Expressions in Each Brackets

Specific Tax = (-0.5) * (-1.5) Open all brackets

Specific Tax= -0.5 * -1.5

Specific Tax = 0.75

So, the tax borne by the producer on the good is 0.75

answer: marginal utility of the fourth brownie is 0.

explanation: marginal utility is the addtional utility gained from the consumption of one more unit of a good. it is given by,

so, marginal utility at the 4th unit will be given by

since, the values are not given here, you can simply find marginal utility at fourth unit by subtracting total utility at 3rd unit from total utility at 4th unit.