question archive Suppose the supply of housing construction is infinitely elastic at a price of $150 per square foot
Suppose the supply of housing construction is infinitely elastic at a price of $150 per square foot
Subject:EconomicsPrice:2.88 Bought3
Suppose the supply of housing construction is infinitely elastic at a price of $150 per square foot. Currently, 1 million share feet are built per month. If the price elasticity of demand for housing is (-1), calculate the monthly excess burden n of a 10% tax on housing construction. What is the monthly excess burden if the tax is 20%? Who will bear the incidence of the tax?
