Percentage Tariff and Elastic Demand. Assume that the supply of imported personal computers (PCs) from China is given by the expression:
where Q is the number of PCs sold (in thousands) and P is the PC price. Given the availability of PCs on the Internet, assume that the demand for PCs is perfectly elastic at a price of $800. This means that the PC demand curve can be drawn as a horizontal line that passes through $800 on the Y-axis.

Question

Percentage Tariff and Elastic Demand. Assume that the supply of imported personal computers (PCs) from China is given by the expression:
  where Q is the number of PCs sold (in thousands) and P is the PC price. Given the availability of PCs on the Internet, assume that the demand for PCs is perfectly elastic at a price of $800. This means that the PC demand curve can be drawn as a horizontal line that passes through $800 on the Y-axis.

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The Answer of Percentage Tariff and Elastic Demand. Assume that the supply of imported personal computers (PCs) from China is given by the expression:
  where Q is the number of PCs sold (in thousands) and P is the PC price. Given the availability of PCs on the Internet, assume that the demand for PCs is perfectly elastic at a price of $800. This means that the PC demand curve can be drawn as a horizontal line that passes through $800 on the Y-axis.