eliopze eliopze

24-12-2023
Mathematics

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Consider a competitive market where 16 units are traded at the equilibrium price of 5. a. Given that the elasticity of supply is 0.5 and the elasticity of demand is −0.4, derive linear demand and supply curves for this good. b. This good becomes subject to a federal tax of 1. What does this tax do to the market-clearing price and quantity?

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