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Suppose That the Government Imposes a $4 Per Month Excise

question 182

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Suppose that the government imposes a $4 per month excise tax on cable TV.If the demand for cable TV is perfectly inelastic and the supply curve is elastic (but not perfectly elastic) ,then the price of cable TV will:


Definitions:

Alditol

A type of sugar alcohol formed by reducing the aldehyde or ketone group in aldoses or ketoses, respectively.

Silver Oxide

A chemical compound of silver and oxygen that's used in some batteries and as a mild oxidizing agent in organic synthesis.

Methyl Iodide

A chemical compound with the formula CH3I, used as a methylating agent in organic synthesis.

Keto-enol Tautomerization

Keto-enol tautomerization is a chemical equilibrium between a ketone (or aldehyde) and an enol (an alcohol directly bonded to a carbon-carbon double bond), where hydrogen atoms and double bonds are redistributed.

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