Suppose the Demand Curve Is Perfectly Inelastic and the Equilibrium

question 80

Essay

Suppose the demand curve is perfectly inelastic and the equilibrium price is $8 and equilibrium quantity is 9.If the government impose an excise tax of $1 per unit,what will be the new price and quantity traded? What is the total tax revenue and who pays the tax?

Develop skills in financial analysis through understanding and applying financial ratios.

Understand the principles of internal control and its role in safeguarding assets.

Understand the concept of self-actualization and its characteristics.

Identify the common qualities among peak experiences, peak performance, and flow.

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Definitions:

Physical Handling

The process involving the manual or mechanical manipulation and movement of physical goods and materials.

Payment Approval

The process of verifying and authorizing the release of funds to settle a transaction or invoice.

Inbound Transportation

Inbound transportation refers to the movement of goods or materials into a firm or factory from suppliers through various modes of transport like road, rail, sea, or air.

Outbound Transportation

involves the movement of finished goods from the warehouse to the end customer, an essential part of the distribution process.