Sales Tax and Elastic Demand. Assume that the supply of a best-selling book at local book stores throughout the United States is a function price such that:
where Q is the number of books sold (in thousands) and P is the book price. Given the availability of this book on amazon.com for $20, demand is perfectly elastic at a price of $20.

Question

Sales Tax and Elastic Demand. Assume that the supply of a best-selling book at local book stores throughout the United States is a function price such that:
  where Q is the number of books sold (in thousands) and P is the book price. Given the availability of this book on amazon.com for $20, demand is perfectly elastic at a price of $20.

Quizplus · Accepted Answer

The Answer of Sales Tax and Elastic Demand. Assume that the supply of a best-selling book at local book stores throughout the United States is a function price such that:
  where Q is the number of books sold (in thousands) and P is the book price. Given the availability of this book on amazon.com for $20, demand is perfectly elastic at a price of $20.