> The company needs a profit margin of x. If you place a tax of y on the company, that margin, simplistically, is now x+y. Not really, this only happens for perfectly inelastic goods. We can use the price elasticity of…
> The company needs a profit margin of x. If you place a tax of y on the company, that margin, simplistically, is now x+y. Not really, this only happens for perfectly inelastic goods. We can use the price elasticity of…