Suppose the Market for Grass Seed Can Be Expressed as

question 48

Essay

Suppose the market for grass seed can be expressed as
Demand: Q^D = 100 - 2p
Supply: Q^S = 3p
Price elasticity of supply is constant at 1.If the demand curve is changed to Q = 10 - .2p,price elasticity of demand at any given price is the same as before.Yet,the incidence of a tax falling on consumers will be higher.Why?

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Definitions:

Allowable Expenses

Costs that are recognized under the provisions of a contract or agreement as reimbursable or claimable.

Contractor's Fee

The payment made to a contractor for their services, typically a percentage of the total cost of a construction project.

Cost Reimbursable Contract

A type of contract where the client pays the contractor for all legitimate actual costs incurred for the project plus a fee representing the contractor’s profit.

Quality

The degree to which a product, service, or process meets specified requirements, customer expectations, or industry standards.