So now what is the supply plus tax curve? Let's say it's five dollars per flag - five dollars per flag. Of one dollar per flag - one dollar per flag. Let's say that there's a tax placed of ten dollars - ten dollars per flag. So let's say that there is a tax - Let me do that in a different color Is a little bit easier to draw, so I'll do that. It'll be - the shift will will be a percentage change instead of a fixed change. Then it'll change the sup - the supply plus tax curve It could be a percentage and if a percentage So what they do is that they place a tax, they place a tax - And once again I'll do a fixed dollar tax. So let's say that - that some government official decides, "You know what? don't like the idea of American flags being made in China." So they decide to tax American flags made in China. In particular a very small percentage change in price leads to a huge percent change in quantity. A very small change in price leads to a huge change in quantity. So this is almost almost almost perfectly - perfectly elastic - elastic demand. If it was perfectly elastic, it would be completely horizontal. So this right over here, this is almost perfectly elastic. And so what you have here is a very large, a high elasticity of demand. I'm going to buy the ones that were made in China." And then the quantity demanded would be much larger. And if the price were even a little bit lower, then people say, "I'm not going to buy the Mexican flag- or the Taiwanese American flags. So if the price for slightly - even slightly higher, the quantity demanded would be much, much, much lower. "People won't be able to tell the difference from a distance." So I'm going to buy one of the substitutes - especially the ones from Taiwan or Mexico or wherever else. Now if at the price were to go slightly above that equilibrium price,what's going to happen? Well, if the price goes slightly above that equilibrium price, people are going to say, "Well, I can go by the American flags made in Taiwan, or even the ones made in America, or made in Mexico, or made some place else. And the quantity demanded, in thousands per year, it looks like it's about twenty five thousand flags are demanded per year. If the price - the price right now - the equilibrium price between where the supply and the demand intersect - the supply curve and the demand curve intersect - is right about seventy dollars per flag. And to think about this flag - think about it this way. So what I've done here - We're going to think about flags - the market for a certain type Selecting a region changes the language and/or content on 's think about how a tax on a product might affect it, if the demand for it is very, very, very elastic. Void where prohibited, taxed, or restricted by law. This pricing is subject to change without notice. Offer may not be assigned, exchanged, sold, transferred, or combined with any other discount or offer, or redeemed for cash or other goods and services. This pricing is limited to one (1) purchase of one (1) Creative Cloud annual membership per customer. This pricing is not available to OEM, commercial, or volume licensing customers. This pricing is available for first-time membership only and limited to eligible education customers who purchase directly from the Adobe Store or by calling Adobe Sales. At the end of your offer term, your subscription will be automatically billed at the standard subscription rate, currently at CAD $467.88/yr (plus applicable taxes), unless you elect to change or cancel your subscription. One-year prepaid Creative Cloud introductory pricingĮligible students 13 and older and teachers can purchase an annual membership to Adobe Creative Cloud for a reduced price of CAD $311.88 for the first year. This pricing is valid for purchases of an annual plan, which requires a 12-month contract. At the end of your offer term, your subscription will be automatically billed at the standard subscription rate, currently at CAD $38.99/mo (plus applicable taxes), unless you elect to change or cancel your subscription. Introductory pricing terms and conditionsĬAD $25.99/month Creative Cloud introductory pricingĮligible students 13 and older and teachers can purchase an annual membership to Adobe Creative Cloud for a reduced price of CAD $25.99/mo for the first year.
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