The graph shows the market for basketballs in which sellers are taxed $6 a ball. Draw a shape that shows the excess burden of the tax on basketballs. The excess burden of the tax on basketballs is $ million. The supply of basketballs is more pays most of the tax. A. elastic; seller OB. elastic; buyer OC. inelastic; buyer OD. inelastic; seller than the demand for basketballs, and the

The graph shows the market for basketballs in which sellers are taxed $6 a ball. Draw a shape that shows the excess burden of the tax on basketballs. The excess burden of the tax on basketballs is $ million. The supply of basketballs is more pays most of the tax. A. elastic; seller OB. elastic; buyer OC. inelastic; buyer OD. inelastic; seller than the demand for basketballs, and the

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Calculate, interpret and try to explain where applicable in each question, why the elasticities of demand for the following examples occur: a. The government announced an introduction of excise tax from R1 to R1.50 per bottle of beer. This increase results in an overall price increase from R9 to R10.50 per bottle to consumers. The expected tax revenue from this will be R30,000. Before the tax hike, 28,000 beers were sold. b. What will happen to the total revenue of soft drink companies if the elasticity of demand for soft drinks is higher than 1 and the price of soft drinks decreases? c. The quantity demanded of a popular magazine decreases from 10,000 copies to 6,000 per month after the publisher increased the price of a copy from R25 to R40. Total revenue from sales of a prescribed textbook on economics increased from R50,000 to R60,000 when the price of the book increased from R400 to R600 per book. Explain why.
If the income elasticity is negative, an increase in income will mean that ____________ will _____________, the good is _____________. ‍the quantity demanded, decrease, inferior demand, decrease, inferior‍ the quantity demanded, increase, normal‍ demand, increase, normal
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The quantity demanded of salt decreases when the price of pepper increases. This is an example of * own-price elasticity. supply elasticity. income elasticity. O rubber band elasticity. cross-price elasticity. If the government wants to put a per unit tax on a product so that it can raise revenue to support local schools, it would most likely accomplish this goal by doing which of the following? * O placing a tax on a good with an elastic demand. placing a tax on a good that has many substitutes. placing a tax on a good with an inelastic demand. placing a tax on a good with a perfectly elastic demand. O relying of the goodness of mankind and simply ask for donations.
A small elasticity of a good rises from $8 to $12 and the quantity demanded fall from 110to90 units
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Using a diagram explain how when elasticity of a good is zero applied at the level of government when setting prices
Consider the following excerpt: "Steve Cannon, CEO of the AMB Group, Blank's holding company, told ESPN that although food and beverage prices ere 50 percent lower in its new Mercedes-Benz Stadium than the prices in the Georgia Dome the previous year, fans spent 16 percent more." If there has been no change in the demand for concessions at football games, which of the following is true? Oa. Demand for concessions is always elastic b. At the initial prices, demand was inelastic. Oc. The demand curve for concessions slopes upwards Od. Concessions are an inferior good
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