A product with perfectly elastic supply has sales of 100 units per week at a price of £2 per unit. Price elasticity of demand is(-)1 .5 over the relevant range. The government imposes a tax 20%. What will be the government’s weekly tax revenue?

£28

JI
Answered by Jamie I. Economics tutor

2109 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Why do we study microeconomics?


Comment on whether an increase in the rate of interest would reduce investment.


Tax incidence: how is a tax borne between consumers and producers?


What is a Merit good? Give and example and explain..


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences