The Challenge Solution says that a gas tax is roughly equally shared by consumers and firms in the long run. If so, what can you say about the elasticities of supply and demand?If in the short run the supply curve is nearly vertical, what (if anything) can you infer about the demand elasticity from observing the effect of a tax on the change in price and quantity?
The Challenge Solution says that a gas tax is roughly equally shared by consumers and firms in the long run. If so, what can you say about the”
by | Mar 12, 2022 | Uncategorized
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