What can you say about the elasticities of supply and demand

Assignment Help Econometrics

Reference no: EM131324570

The Challenge Solution says that a gas tax is roughly equally shared by consumers and firms in the long run. 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?

Reference no: EM131324570

Questions Cloud

Price and quality rate on consumers evaluation of products : What are the perceived strengths and weaknesses of our retail operations? What is the demographic profile of visitors to our website? How has the new packaging affected the sales of the product? How do price and quality rate on consumers’ evaluation ..

The market risk premium is most closely measured as : The "market risk premium" is most closely measured as

Calculate value of each bond and relative rate sensitivity : Mr. Richards wants additional analysis on these bonds. He wants you to assume that a year has transpired and to make the following assumptions about the bonds: each bond is exactly 1 year shorter in term rate levels ar 1.75% for 9 years, 1.50% for 6 ..

Discuss the effects of the end protestant reformation : Write an essay and respond to each aspect of the question.- Discuss the effects of the end Protestant Reformation in western Europe.

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?

Hepatic portal system connect in adults : What is a portal system? What organs does the hepatic portal system connect in adults? What is the purpose of this system?

Consider an option on dividend-paying stock : Consider an option on a dividend-paying stock when the stock price is $60, the exercise price is $58, the risk-free interest rate is 3% per annum, the volatility is 25% per annum, and the time to maturity is three months. The stock will pay a dividen..

Most important process that a firm undertakes : The capital budgeting process is important, but is it the most important process that a firm undertakes. Why or why not? If you believe there is a more important process, what is it and why do you think it is more important?

What is the incidence on consumers : What is the effect of a $1 specific tax on equilibrium price and quantity if demand is perfectly elastic and supply is perfectly inelastic? What is the incidence on consumers? Explain.

User Account

All Pages