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Percentage Tax and Inelastic Demand

Question 24

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Percentage Tax and Inelastic Demand. Assume the supply of cable TV services in the City of San Marcos, Texas, can be described as:
Percentage Tax and Inelastic Demand. Assume the supply of cable TV services in the City of San Marcos, Texas, can be described as: where Q is thousands of homes served per month with cable TV service, and P is the price per month. Also assume that cable TV service demand is perfectly inelastic at a quantity of 25(000). where Q is thousands of homes served per month with cable TV service, and P is the price per month. Also assume that cable TV service demand is perfectly inelastic at a quantity of 25(000).
Percentage Tax and Inelastic Demand. Assume the supply of cable TV services in the City of San Marcos, Texas, can be described as: where Q is thousands of homes served per month with cable TV service, and P is the price per month. Also assume that cable TV service demand is perfectly inelastic at a quantity of 25(000).

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