Essay
Per Unit Tax and Elastic Demand. Assume that the supply of tickets to an outdoor music festival in Thousand Oaks, California, is a function of price such that:
where Q is the number of tickets (in thousands) and P is the ticket price. Also assume that the demand for such concert tickets is perfectly elastic at a price of $30. This means that the ticket demand curve can be drawn as a horizontal line that passes through $30 on the Y-axis.
Correct Answer:
Verified
Correct Answer:
Verified
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