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The burden of a tax is shared by producers and consumers. Under what conditions will consumers pay most of the tax? Under what conditions will producers pay most of it? What determines the share of a subsidy that benefits consumers?
The burden of a tax and the advantages of a subsidy rely on the elasticities of demand and supply. Determine if the ratio of the elasticity of demand to the elasticity of supply is small, the burden of the tax falls basically on consumers. Alternatively, if the ratio of the elasticity of demand to the elasticity of supply is large, the burden of the tax falls basically on producers. Likewise, the benefit of a subsidy accrues mainly to consumers (producers) if the ratio of the elasticity of demand to the elasticity of supply is small (large).
Equity share using walter and gordon model
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Q. Explain Net Present Value Method? Net Present Value (NPV) Method: - This process measures the Present value of returns per rupee invested. In this method present value of
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Laspeyres Method Laspeyres method uses the quantities consumed during the base period in computing the index number. This method is also the most commonly used method which inc
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Just as any other financial market, money market also involves transfer of funds in exchange for financial assets. Because of the nature of the money market, the
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