Franchise Tax and Inelastic Demand. Assume the supply of sewer and water services in the City of Greenville, North Carolina, can be described as:
where Q is thousands of homes served per month with sewer and water service, and P is the price per month. Also assume that sewer and water service demand is perfectly inelastic at a quantity of 50(000).

Question

Franchise Tax and Inelastic Demand. Assume the supply of sewer and water services in the City of Greenville, North Carolina, can be described as:
  where Q is thousands of homes served per month with sewer and water service, and P is the price per month. Also assume that sewer and water service demand is perfectly inelastic at a quantity of 50(000).

Quizplus · Accepted Answer

The Answer of Franchise Tax and Inelastic Demand. Assume the supply of sewer and water services in the City of Greenville, North Carolina, can be described as:
  where Q is thousands of homes served per month with sewer and water service, and P is the price per month. Also assume that sewer and water service demand is perfectly inelastic at a quantity of 50(000).