Green et al. (2005) estimate that demand elasticity is -0.47 and supply elasticity is 12.0 for almonds. If the government were to apply a specific tax to this commodity, what incidence would fall on consumers?

Green et al. (2005) estimate that demand elasticity is -0.47 and supply elasticity is 12.0 for almonds. If the government were to apply a specific tax to this commodity, what incidence would fall on consumers?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 16E: Who would pay a tax imposed on the supplier when the price elasticity of supply is inelastic and the...

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Green et al. (2005) estimate that demand elasticity is -0.47 and supply elasticity is 12.0 for

almonds. If the government were to apply a specific tax to this commodity, what incidence

would fall on consumers?

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