Suppose That Demand Is Perfectly Inelastic

question 8

Essay

Suppose that demand is perfectly inelastic.Supply is normal and upward sloping.What is the economic incidence of a unit tax placed on suppliers? Illustrate this with an appropriate diagram.

Comprehend the principle of net primary productivity (NPP) and how it varies among different ecosystems and food web structures.

Understand the second law of thermodynamics as it applies to energy transfer in ecosystems and the implications for energy availability.

Realize the significance of different diets on the production efficiency and environmental impact of domesticated animals.

Appreciate the role of microbes in nitrogen cycling and distinguish between biological processes facilitated by them.

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Definitions:

Capital Budgeting

Analysis techniques concerned with justifying money spent on long-term assets and projects.

Profitability

A measure of the efficiency of a company or investment in generating profit or return compared to its revenue or investment size.

Capital Budgeting Process

The procedure companies use to evaluate and select long-term investments that are aligned with their goal of shareholder wealth maximization.

Incremental Cash Flows

The additional cash flow a business receives from taking on a new project, used to analyze the profitability of that project.