Explain the Effect of Price Elasticities of Supply and Demand

question 193

Essay

Explain the effect of price elasticities of supply and demand on tax incidence.

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Definitions:

Commercial Impracticability

A legal doctrine that excuses a party from performing its contractual obligations due to unforeseen events that make performance exceedingly difficult or expensive.

Earthquake

A natural phenomenon characterized by the shaking of the earth's surface, typically resulting from the movement of tectonic plates beneath the earth's crust.

Building Material

Materials used in the construction of buildings and structures, including wood, concrete, steel, bricks, and glass.

Condition Subsequent

A condition in a contract that, when met, can end obligations under the contract or terminate the contract itself after the contract has already been executed.