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Answer to Question #29238 in Microeconomics for Mariana
Question #29238
Whether a flat per-unit tax is imposed on producers or consumers is basically irrelevant, because:
-Equilibrium price and quantity will adjust, but producers' revenue will not change.
-The only difference between the two cases is the posted price.
-Demand is never upward sloping
please, explain the correct choice.
-Equilibrium price and quantity will adjust, but producers' revenue will not change.
-The only difference between the two cases is the posted price.
-Demand is never upward sloping
please, explain the correct choice.
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