28) If the government puts a $2 excise tax on a product and as a result, price rises by $0.75, 28)which of the following statements is correct?170605040A) The sellers pay more of the tax than the buyers.B) The buyers pay more of the tax than the sellers.C) The government's tax revenue falls.D) The quantity demanded of the product falls by 37.5%.E) The quantity demanded of the product rises by 37.5%The graph below illustrates three demand curves.IDI240 400 540 720Quantity per day29) Refer to the graph above to answer this question. Which of the following statements iscorrect?A) The price elasticity of demand between points A and B on D₂ is 0.5.B) DI illustrates an inferior good.C) The slope of all three demand curves is constant.D) The shift from D₁ to D₂ could illustrate a change in the quantity demanded for aproduct as a result of a decrease in the price of a substitute good.30) Refer to the graph above to answer this question. Which of the following statements is 30)correct?A) The price elasticity of demand between points A and C on D3 is 0.267.B) The price elasticity of demand between points A and C on D3 is 0.375.C) The demand between points A and C on D3 is elastic.D) The slope of demand curve D, and its price elasticity are the same.31) If a product has few substitutes, which of the following statements is correct?A) It is likely that its income elasticity is high.B) It is likely that it is an inferior product.C) It is likely that its supply elasticity is high.D) It is likely that its price elasticity of demand is low.29)32) The Dean of Arts recently announced a 20% increase in tuition and explained that theincrease was needed to raise the university's revenue. Which of the following might theDean be assuming about the elasticity of demand for education at her school?A) It is elastic.B) It is inelastic.C) It is perfectly elastic.D) It could be either elastic or perfectly elastic.31)32)

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28) If the government puts a $2 excise tax on a product and as a result, price rises by $0.75, 28) which of the following statements is correct? A) The sellers pay more of the tax than the buyers. B) The buyers pay more of the tax than the sellers. C) The government's tax revenue falls. D) The quantity demanded of the product falls by 37.5%. E) The quantity demanded of the product rises by 37.5%

28) If the government puts a $2 excise tax on a product and as a result, price rises by $0.75, 28) which of the following statements is correct? A) The sellers pay more of the tax than the buyers. B) The buyers pay more of the tax than the sellers. C) The government's tax revenue falls. D) The quantity demanded of the product falls by 37.5%. E) The quantity demanded of the product rises by 37.5%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

28) If the government puts a $2 excise tax on a product and as a result, price rises by $0.75, 28)
which of the following statements is correct?
170
60
50
40
A) The sellers pay more of the tax than the buyers.
B) The buyers pay more of the tax than the sellers.
C) The government's tax revenue falls.
D) The quantity demanded of the product falls by 37.5%.
E) The quantity demanded of the product rises by 37.5%
The graph below illustrates three demand curves.
I
DI
240 400 540 720
Quantity per day
29) Refer to the graph above to answer this question. Which of the following statements is
correct?
A) The price elasticity of demand between points A and B on D₂ is 0.5.
B) DI illustrates an inferior good.
C) The slope of all three demand curves is constant.
D) The shift from D₁ to D₂ could illustrate a change in the quantity demanded for a
product as a result of a decrease in the price of a substitute good.
30) Refer to the graph above to answer this question. Which of the following statements is 30)
correct?
A) The price elasticity of demand between points A and C on D3 is 0.267.
B) The price elasticity of demand between points A and C on D3 is 0.375.
C) The demand between points A and C on D3 is elastic.
D) The slope of demand curve D, and its price elasticity are the same.
31) If a product has few substitutes, which of the following statements is correct?
A) It is likely that its income elasticity is high.
B) It is likely that it is an inferior product.
C) It is likely that its supply elasticity is high.
D) It is likely that its price elasticity of demand is low.
29)
32) The Dean of Arts recently announced a 20% increase in tuition and explained that the
increase was needed to raise the university's revenue. Which of the following might the
Dean be assuming about the elasticity of demand for education at her school?
A) It is elastic.
B) It is inelastic.
C) It is perfectly elastic.
D) It could be either elastic or perfectly elastic.
31)
32)

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