Homework Help

The market for smart phones is characterized by the following supply and demand...

user profile pic

serenityrock90 | eNotes Newbie

Posted May 16, 2013 at 10:54 AM via web

dislike 0 like

The market for smart phones is characterized by the following supply and demand functions:

Supply: P=2Qs    Demand: P=42-Qd

Where P denotes price, Qs denotes quantity supplied, Qd denotes quantity demanded.

The government levies a tax of GBP 9 on each smart phone, collected from sellers. What fraction of the tax does the seller bear and what fraction does the buyer bear?

 

0 Answers | Be the first to answer

Join to answer this question

Join a community of thousands of dedicated teachers and students.

Join eNotes