Mathematics, 29.02.2020 00:24 queenfan1818
If the inverse demand function is p= a-bQ and the inverse supply function is p =c+ dQ, show that the incidence of a specific tax of τ per unit falling on consumers is Note that if demand is Q = (a/b)-(1/b)p, then dQ/dp = (-1/b), and if supply is Q =-(c/d) + (1/d)p, then dQ/dp = ( 1 /d) The incidence of a specific tax or per unit falling on consumers is because ○ A, ε = (1/-b) and η : ( 1/d) Oc. ε=(1/-d)(p/Q) and η = (1/b)(p/Q). D. ε = ( 1/-b)(p/Q) and η = (1/d)(p/Q).
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