Suppose the supply curve for cars is more elastic than the demand curve for cars.  If the government imposes a tax on car sellers, which party (buyers or sellers) will bear more of the tax burden?  How will the tax burden change if the government imposed the tax on car buyers, rather than sellers?

Suppose the elasticity of demand for used cars is estimated to be 3.  What does this mean? What will be the effect on the quantity demanded for used cars if the price rises by 10 Percent? Suppose a university raises its tuition from $3,000 to $3,500.  As a result, student enrollment falls from falls from 5,000 to 4,500.  Calculate the price elasticity of demand.  Is demand elastic, unitary elastic, or inelastic? Suppose the movie theater raises the price of popcorn 10 percent, but customers do not buy any less of it.  What does this tell you about the price elasticity of demand, and what will happen to total revenue as a result of the price increase? Suppose the income elasticity of demand for furniture is 3 and the income       elasticity of demand for physician services is 0.3.  Compare the impact on furniture and physician services of a recession that reduces consumer income by 10%. Opponents of increasing the tax on gasoline argue that the big oil companies just pass the tax…

Suppose the demand and supply for Xbox-One are: Qd = 500 - 2P, Qs = -100 + 4P . Assume that consumers demand 75 less Xbox units at each price. Also, a new tax has been imposed on foreign microchips, increasing the costs of production, and reducing supply by 35 units at each price Given this information find: a. CS0 = $ b. CS2 = $  c. PS2 = $

The train fare charged by the local train company is $4.5 during the morning rush hour, but only $2 during the early afternoon. This can be explained by the fact that the demand for train rides during the morning rush hour is _____; but during the early afternoon the demand for train rides is _____: Group of answer choices 1. less elastic; more elastic 2. more elastic; less elastic 3. unit elastic; inelastic 4. more elastic; less inelastic   The demand for granola cereal is more price-elastic than the demand for cereals as a whole. This is best explained by the fact that:  Group of answer choices 1. granola cereals are a luxury. 2. cereals as a whole are a necessity. 3. there are more substitutes for granola cereals than for cereals as a whole. 4. changes in consumption of cereals as a whole is greater than consumption of granola cereals when prices change.

Use the concept of Price Elasticity of Demand to explain why the public policy recommendation of raising taxes on cigarettes causes State revenues to rise while also effectively deterring smoking among young people. Be sure to consider availability of substitutes and the effect of the percentage spent of each buyer’s budget when formulating a response. Who bears the brunt of the tax – the consumer or the producer? Are there any potential negative side effects of increasing taxes on cigarettes?

The poor tend to have a price elasticity of demand for movie tickets that is greater than 1. Why don't you see signs offering “poor people discounts” similar to the signs offering ‘senior citizen discounts”?

Suppose that a large city has dozens of apartment complexes that are nearly identical in terms of size, age, and amenities. Assume the demand curve for an apartments at an individual complex is perfectly elastic. If the city places an excise tax on apartments, who will pay the tax? What will happen to the quantity demanded. Explain and show graphically. For graphical purposes, assume the supply of apartments is upward sloping.

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?

If you had been hired to advise your local public transit authority on how they could raise transitrevenues and you knew the elasticity of demand for transit rides, you would be able to give a goodanswer.Explain why above statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate.

Please answer the following. A diagram and one paragraph should help to support your answer.  Question: With consideration for elasticity (especially PED), what would be one industry in which the government instituting a subsidy would make sense and why?