Had the demand for pumpkins been perfectly inelastic at Point. A, the price elasticity of demand for pumpkins from the equilibrium point before the imposition of the tax to the equilibrium point after the imposition of the tax would be. A.1 B.0 C-1 D. infinity. Price ($) 8.50 7.25 5.50 B 700 1,200 Supply 2 Supply 1 Demand Quantity of pumpkins

Had the demand for pumpkins been perfectly inelastic at Point. A, the price elasticity of demand for pumpkins from the equilibrium point before the imposition of the tax to the equilibrium point after the imposition of the tax would be. A.1 B.0 C-1 D. infinity. Price ($) 8.50 7.25 5.50 B 700 1,200 Supply 2 Supply 1 Demand Quantity of pumpkins

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 2.5P: (Determinants of Price Elasticity) Would the price elasticity of demand for electricity be more...

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Similar questions

Explain why using the midpoint formula for calculating the elasticity of demand gives the same result whether price increases or decreases, but using the initial price and quantity instead of the average does not.
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