Got Homework?
Connect with other students for help. It's a free community.
Here's the question you clicked on:
 0 viewing

This Question is Open

Klanfer Group TitleBest ResponseYou've already chosen the best response.0
Hum, I dont know if this is what your asking, but I know that when the government creates a tax, it will reduce the surplus both from the demandants and the suppliers. The question is: Who will suffer more after the tax is created? The answer is in the elasticity of their curves. If the demand curve is more inelastic relative to the supply curve, than the consumers will have a bigger loss of surplus. The contrary is true. If the supply curve is more inelastic compared to the demand curve, than after the tax, the producers will have a bigger loss. The rule is simple. The more inelastic part (Between demand and supply) will always have the bigger loss of surplus after the taxes.
 2 years ago

sakura1 Group TitleBest ResponseYou've already chosen the best response.0
THANKS ,I GOT IT ^ _ ^
 2 years ago
See more questions >>>
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.