Different types of goods

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Abhijith R

A brief description of different types of goods

Business Technology Economy & Finance

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This is a case study. Case is : As one example of demand and supply analysis, let us assume we have a product with the situation shown in the graph below. The price is Rs.100 per unit.Now the government has imposed 5% tax to the seller which increased the cost of production. Please explain following with the support of graph: Do the cost of production affects Demand or Supply Will there be a shift or movement along supply Will the cost of production will make the good less profitable In order to make the same profit as before application of tax, how much price the seller should increase presuming that the (i) demand of the product is totally inelastic and (ii) demand of the product is perfectly elastic What are the factors which affects the demand and supply of any product

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