If the government wants to collect a substantial amount of tax revenue, it should target products that have demand because the A) Elastic; the quantity purchased will drop only slightly B) Inelastic; tax burden falls mainly on the buyer C) Inelastic; the quantity purchased will drop just slightly D)Elastic; tax burden falls mainly on the supplier If the government wants to collect a substantial amount of tax revenue, it should target products that have demand because the A) Elastic; the quantity purchased will drop only slightly B) Inelastic; tax burden falls mainly on the buyer C) Inelastic; the quantity purchased will drop just slightly D) Elastic; tax burden falls mainly on the supplier On a downward-sloping linear demand curve, where is total revenue maximized? A) At the vertical intercept of the demand curve B At the horizontal intercept of the demand curve C) At the midpoint of the demand curve D) It is impossible to tell without knowing prices and quantities demanded

If the government wants to collect a substantial amount of tax revenue, it should target products that have demand because the A) Elastic; the quantity purchased will drop only slightly B) Inelastic; tax burden falls mainly on the buyer C) Inelastic; the quantity purchased will drop just slightly D)Elastic; tax burden falls mainly on the supplier If the government wants to collect a substantial amount of tax revenue, it should target products that have demand because the A) Elastic; the quantity purchased will drop only slightly B) Inelastic; tax burden falls mainly on the buyer C) Inelastic; the quantity purchased will drop just slightly D) Elastic; tax burden falls mainly on the supplier On a downward-sloping linear demand curve, where is total revenue maximized? A) At the vertical intercept of the demand curve B At the horizontal intercept of the demand curve C) At the midpoint of the demand curve D) It is impossible to tell without knowing prices and quantities demanded

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the price elasticity of demand for a good is 4, then a 12 percent decrease in price results in a 0.33 percent increase in the quantity demanded. 3 percent increase in the quantity demanded. 30 percent increase in the quantity demanded. 48 percent increase in the quantity demanded.
Question 18.18. You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than 1. To increase total revenues, you should: increase the price of the software. decrease the price of the software. hold the price of the software constant. increase the supply of the software. Question 19.19. A state government wants to increase the taxes on cigarettes to increase tax revenue. This tax would only be effective in raising new tax revenues if the price elasticity of demand is unity. elastic. inelastic. perfectly elastic. Question 20.20. Movie theaters charge lower prices to see a movie in the afternoon than in the evening because there is an inelastic supply of movies in the evening. elastic demand to see movies in the evening. elastic demand to see movies in the afternoon. inelastic demand to see movies in the afternoon.
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Take care of plagiarism. 1.A 10% increase in price that leads to a 12% decrease in the amount purchased indicates a price elasticity of more than 1 (in absolute value). True False 2. A 10% increase in price that leads to a 2% decrease in total expenditures (or total revenue) indicates a price elasticity of more than 1 (in absolute value). True False 3. If the percentage change in price is less than the resultant percentage change in quantity demanded, demand is__________ .(elastic/inelastic/unit elastic)
The price elasticity of demand for beer among young adults (age 18 to 24) is about 1.30, and the number of highway deaths is roughly proportional to the group’s beer consumption. If a state imposes a beer tax that increases the price of beer by 20%, by how much will the number of highway deaths among young adults decrease?
Price elasticity of demand is a measure of how responsive a change in the quantity demanded is to a change in: A) Interest Rate B) Consumer preferences C) Supply D) Price
If the percent rise in price is larger than the percent decline in quantity, then: the demand for your product could be either elastic or inelastic. the demand for your product is elastic. the demand for your product is inelastic. the demand for your product could be neither elastic nor inelastic.
The price elasticity of demand measures which of the following? how responsive the quantity demanded is to changes in price the percentage-slope of the demand curve the slope of the demand curve based on price the rate at which demand changes when price changes
The elasticity of demand is used to determine if a change in price results in a shortage or a surplus. find the market equilibrium. determine if consumers will or will not buy a product. measure how responsive consumers are to a change in price. determine in what direction the demand curve shifts if income changes.
If the demand for American automobiles is more elastic in Europe than it is in the United States, we might expect
Which of the following statements about the price elasticity of demand is correct? Other things equal, if good x has close substitutes and good y does not have close substitutes, then the demand for good x will be more elastic than the demand for good y. Price elasticity of demand reflects the many economic, psychological, and social forces that shape consumer tastes. The price elasticity of demand for a good measures the willingness of buyers of the good to buy less of the good as its price increases. All of the above are correct.
If consumers' sensitivity to price changes makes demand elastic, then a price decrease leads to: an increase in total revenue. a decrease in supply. an increase in supply. a decrease in total revenue.