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

Explain why each of the following factors may influence the, Ask qExplain w... Ask qExplain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the com

Price/earnings (p/e) ratio, Price/Earnings (P/E) Ratio This is a measur... Price/Earnings (P/E) Ratio This is a measure of an organization investment potential. Literally, a P/E ratio is how much a share is worth per dollar of earnings. The price-earn

What is game theory, What is Game Theory?  Game Theory is a mathematica... What is Game Theory?  Game Theory is a mathematical method of decision-making in which a competitive situation is examined to verify the optimal course of action for an interes

Agricultural growth and productivity trends, AGRICULTURAL GROWTH AND PRODUC... AGRICULTURAL GROWTH AND PRODUCTIVITY TRENDS: Despite a steady decline in the share of agriculture in the Gross Domestic Product (GDP) of India, this sector continues to remain

Tech, impact of computer technology on nigerian economy impact of computer technology on nigerian economy

Crop patterns, CROP PATTERNS: Analysis of crop patterns in India shoul... CROP PATTERNS: Analysis of crop patterns in India should relate to the following aspects:  a) The relative significance of different crops/crop groups in the overall area u

Business decision making, what is microeconomics in business decision what is microeconomics in business decision

Cross Price elasticity,

Explain capital adequacy, Q. Explain Capital Adequacy? Capital Adequacy... Q. Explain Capital Adequacy? Capital Adequacy: Capital adequacy rules are loose regulations which are imposed on private banks, in hope of ensuring that they have adequate inte

Production theory, why constant return to scale is important why constant return to scale is important