Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 4, Problem 11E
(a)
To determine
To calculate the change in consumption of food.
(b)
To determine
To calculate the change in the consumption of food.
(c)
To determine
To graphically represent the welfare of the consumer.
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Students have asked these similar questions
Suppose the income elasticity of demand for food is 0.45 and the price elasticity of demand is 1.00.
Suppose also that Felicia spends $10,000 a year on food, the price of food is $2, and that her income is $
25,000. If a sales tax on food caused the price of food to increase to $2.50, what would happen to her
consumption of food? Because a large price change is involved, use the arc elasticity to measure the price
elasticity of demand rather than a point elasticity. Felicia's consumption of food would decrease by units. (
Enter your response rounded to two decimal places.) Suppose that Felicia gets a tax rebate of $2,500 to
ease the effect of the sales tax. What would her consumption of food be now? (Again, use an arc income
elasticity to answer this question instead of a point income elasticity.) Felicia's consumption of food would
now be 4,175.18 units. (Enter your response rounded to two decimal places.) Is she better or worse off
when given a rebate equal to the sales tax payments?…
Suppose the income elasticity of demand for food is 0.45 and the price elasticity of demand is
- 1.00. Suppose also that Felicia spends $10,000 a year on food, the price of food is $2, and that
her income is $25,000.
If a sales tax on food caused the price of food to increase to $2.50, what would happen to her
consumption of food? Because a large price change is involved, use the arc elasticity to measure
the price elasticity of demand rather than a point elasticity.
Felicia's consumption of food would decrease by 1000.00 units. (Enter your response rounded to
two decimal places.)
Suppose that Felicia gets a tax rebate of $2,500 to ease the effect of the sales tax. What would
her consumption of food be now? (Again, use an arc income elasticity to answer this question
instead of a point income elasticity.)
Felicia's consumption of food would now be 4,175.18 units. (Enter your response rounded to two
decimal places.)
Is she better or worse off when given a rebate equal to the sales tax…
PLEASE ANSWER THE SECOND BLANK!!!! THANK YOU
Chapter 4 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
Ch. 4.A - Prob. 1ECh. 4.A - Prob. 2ECh. 4.A - Prob. 3ECh. 4.A - Prob. 4ECh. 4.A - Prob. 5ECh. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Prob. 5RQ
Ch. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 8RQCh. 4 - Prob. 9RQCh. 4 - Prob. 10RQCh. 4 - Prob. 11RQCh. 4 - Prob. 12RQCh. 4 - Prob. 1ECh. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - Prob. 4ECh. 4 - Prob. 5ECh. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Judy has decided to allocate exactly 500 to...Ch. 4 - The ACME Corporation determines that at current...Ch. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 13ECh. 4 - Prob. 14ECh. 4 - Prob. 15ECh. 4 - Prob. 16E
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