In an effort to curb gun violence, some US cities are implementing gun buyback programs. Local police departments will buy back guns from the public, no questions asked. For such programs to be effective, what must be true about the elasticity of demand and supply? Explain your reasoning with demand-supply diagrams.

Your friend is a talented artist.  She has no other employment options, she finds painting effortless, and the cost of materials is low enough that it can be safely ignored. Based on your analysis of market data, you estimate that elasticity of demand for her paintings is given in the displayed table. If your friend wants to maximize her income, what price do you advise her to charge for her paintings?  Include a brief explanation.  (If you think you can only determine a price range, as opposed to a precise price, give a price range.)

2 c. The base rate for a taxi fare in Toronto was recently raised by the Toronto taxi Commission from $3.00 to $3.50. After this increase, taxicab ridership decreased by 8%. Using the midpoint formula, determine if the demand for taxi rides in Toronto is elastic or inelastic. Why might this estimate of elasticity be inaccurate. From your calculation, what happened to the cab driver’s revenue after the fare rose?

Suppose that legalizing the use of marijuana would decrease its price by 92 percent. If the price elasticity of demand for marijuana is -2.75, what would be the percentage increase in the quantity of marijuana demanded from legalizing marijuana? percent. (Enter a numeric response using a real number rounded to two decimal places.) Suppose instead that the price elasticity of demand for marijuana is -0.17. What would be the percentage increase in the quantity of marijuana demanded from legalizing marijuana? decimal places). percent (enter your response rounded to two The higher the absolute value of the price elasticity of demand for marijuana, the V the increase in marijuana use that would result from legalization.

You are the manager of a gas station and your goal is to maximize profits. Based on your past experience, the elasticity of demand by Texans for a car wash is -4, while the elasticity of demand by non-Texans for a car was is -6. If you charge Texans $20 for a car wash, how much should you charge a man with Oklahoma license plates for a car wash?   a. $20.00   b. $1.50   c. $18.00   d. $15.00

Suppose the demand for crossing the Golden Gate Bridge is given by Q = 10,000 − 1,000P.  a. If the toll (P) is $3, how much revenue is collected? b. What is the price elasticity of demand at this point?   c. Could the bridge authorities increase their revenues by changing their price? d. In 2019, the San Francisco Bay area Water Emergency Transportation Authority (WETA) announced it was considering the implementation of hovercraft service as a supplement to existing ferries. Suppose that a fast hovercraft alternative to the Golden Gate Bridge is implemented between Marin County and San Francisco. How would the new service affect the elasticity of demand for trips across the Golden Gate Bridge?