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suppose the absolute value of the price elasticity of demand for harley davidson motorcycles is 4.04, while the price elasticity of supply for harley davidson motorcycles is 0.22. if congress reinstates a luxury tax on high-end motorcycles, who will pay more of the tax?

Respuesta :

Builders of Harley-Davidson motorcycles will contribute more than purchasers of Harley-Davidson motorcycles.

What does demand elasticity mean?

The degree to which demand reacts to a change in an economic component is referred to as demand elasticity. When assessing elasticity, price is the economic element that is most frequently employed. The availability of substitutes and income level are further factors. Elasticity gauges how changes in economic conditions affect demand movements.

What is meant by supply elasticity?

Price elasticity of supply is the percentage change in quantity supplied as a result of a specific percentage change in the commodity's price. The ratio between the percentage change in the quantity delivered and the percentage change in the commodity's price is used to calculate it.

Learn more about supply elasticity here: https://brainly.com/question/28192591

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