The price elasticity of demand for lychee fruit is 1.3, while the price elasticity of supply is 0.7. The incidence of a $0.25 excise tax placed on lychee fruit will be O higher for consumers. equal for producers and consumers. O nonexistent for both producers and consumers. O higher for producers.

The table below shows the demand schedule for museum admissions in a small city. Price (per visit per person) Between the prices of $9 and $10, the elasticity of demand is O A. 0.68. B. 0.88. C. 1.46. D. 1.13. E. 0. $10 $9 $8 $7 $6 Quantity Demanded (thousands of person-visits per year) 6 7 8 9 10

1. Optimal choice of capital Eleanor makes sweaters in her home. Starting with just some knitting needles and yarn, she was able to knit 60 sweaters per year. Now some local stores have expressed interest in her designs and offered to buy her sweaters for $10 each. This makes it worthwhile for her to invest in some capital; in particular, she could produce many more sweaters if she invested in one or more looms, as shown in the following table. Assume that Eleanor's sweater business is a perfectly competitive firm. Complete the following table by calculating the marginal physical product (MPP) of each loom and the marginal revenue product (MRP) of each loom. Quantity of Input (Looms) Output (Sweaters per year) MPP of Each Loom (Sweaters) MRP of Each Loom (Dollars) 0 1 2 3 4 5 60 110 150 184 213 238 50 40 34 29 25 If the rental price of a loom is $270 per year, Eleanor should use 500 400 340 290 250 Suppose the demand for sweaters is very elastic, while the demand for cigarettes is very…

P $3.00 $2.66 $2.00 18. You are in the business of producing and selling hamburgers, French fries, pizza, and ice cream. The mayor of your city plans to impose a sales tax on one of these products. Based on the elasticities: j. k. Which of these goods would your customers least like to be taxed? Which of these goods would your customers prefer to be taxed? B S₁ So 130 150 bb bb Figure two: effect of excise tax on supply and demand QUESTION #19: a) TO OU a. b. C. b) a. b. C. Before the Tax: Price the Consumer Pays = Price the Producer Receives = Quantity = After the Tax, Price the Consumer Pays = Price the Producer Receives = Tax per unit = d. Quantity = e. Total Tax Revenue = f. Proportion of the Total Tax Consumers Pay = g. Proportion of the Total Tax Producers Pay = h. Who Pays the Burden of the Tax = i. DWL = ?

A $1-per-gallon tax on the sale of gasoline will raise the price by $1 per gallon if Select one: a. the supply is perfectly inelastic. O b. the demand is unit elastic. the supply is perfectly elastic. O d. the demand is perfectly elastic.

Price (Dollars) 12 10 8 2 0 0 O 0.5 01 O 1.25 02 5 offer 4,10 8,8 10 ma Assessments Torro. Demand for Product Z 16,6 20 15 Quantity (Pounds) 25 What is the price elasticity of demand when price increases from $8 to $10? O 0.4 24,4 ✓ Gradebook 30 30,2 35 Email 25 Tools -

Suppose the market for a product is given by the following S+D functions. price 100 80 60 40 20 20 Demand 40 60 80 100 120 140 How much DWL does a $10 tax create? O a. zero Ob. 200 O c. 600 O d. 400 Supply

14. Assume the following occurs in a market: General Electric (only company in town) raises your electric bill drastically in fees. Does electricity have an inelastic or elastic demand? * A. Elastic O B. Inelastic

I need the answer please