Franchise Tax and Inelastic Demand. Assume the supply of broadband services in the City of Williamsburg can be described as:
where Q is thousands of homes served per month with broadband service, and P is the price per month. Also assume that broadband service demand is perfectly inelastic at a quantity of 30(000). This means that the broadband demand curve can be drawn as a vertical line that passes through 30(000) on the X-axis.

Question

Franchise Tax and Inelastic Demand. Assume the supply of broadband services in the City of Williamsburg can be described as:
  where Q is thousands of homes served per month with broadband service, and P is the price per month. Also assume that broadband service demand is perfectly inelastic at a quantity of 30(000). This means that the broadband demand curve can be drawn as a vertical line that passes through 30(000) on the X-axis.

Quizplus · Accepted Answer

The Answer of Franchise Tax and Inelastic Demand. Assume the supply of broadband services in the City of Williamsburg can be described as:
  where Q is thousands of homes served per month with broadband service, and P is the price per month. Also assume that broadband service demand is perfectly inelastic at a quantity of 30(000). This means that the broadband demand curve can be drawn as a vertical line that passes through 30(000) on the X-axis.