2. a. Suppose the demand for saline solution is perfectly inelastic for contact lens wearers. If the government imposes a tax on saline solution, what occurs? Be sure to tell what happens to the price paid by the buyers and discuss the incidence of the tax.
b. If income tax rates on labor income are decreased, what is the effect on the labor supply and the labor supply curve? What is the effect on the equilibrium quantity of labor hired?

Posted Date: 4/27/2012 11:48:39 AM | Location : United States

Ask an Expert

Related Discussions:- Micro, Assignment Help, Ask Question on Micro, Get Answer, Expert's Help, Micro Discussions

Write discussion on Micro
Your posts are moderated

Write your message here..

Related Questions

Asymmetric information, optimal contracts under symmetric information optimal contracts under symmetric information

Show the method of applying a discount, Q. Show the method of applying a di... Q. Show the method of applying a discount? The method of applying a discount rate to convert future monetary amounts to their equivalent value in today's terms, based on the pr

Discretionary fiscal policy, Discretionary Fiscal Policy: Some government t... Discretionary Fiscal Policy: Some government taxing and spending programs can be adjusted by government in response to changing economic circumstances. These discretionary measures

Determine the price charged by the profit maximizing cartel, In an industry... In an industry with two firms, represent the outputs for these single product firms as q 1 and q 2 . The two firms decide to form a cartel and set their levels of output to maxim

Discuss about the evaluation step in analytical frameworks, Discuss about t... Discuss about the evaluation step in analytical frameworks. Evaluations: The fifth step into studying an economic step is to estimate outcomes resulting through the under

Aggregate demand and aggregate supply, In a small rural town, 150 people wo... In a small rural town, 150 people would like to be employed (this is the supply of labor). In order to make profits, capitalists hire some of these workers to produce grain. Those

Price crimination, (i) Define the three types of price discrimination, clea... (i) Define the three types of price discrimination, clearly stating the different information requires of each type of discrimination. (ii) Find a real-world example of second-degr

Slutsky equation, how to solve min (x+y/2, 2y+3x, 3x) how to solve min (x+y/2, 2y+3x, 3x)

Market Penetration, Market Penetration: Indian entrepreneurs have to ... Market Penetration: Indian entrepreneurs have to constantly bear in mind the fast changing trade trends and re-orient their strategies to derive higher yields by way of large

Limi price, bains limit price bains limit price