Microeconomics (7th Edition)
Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 6, Problem 6.3.6PA
To determine

The impact of adopting soda tax on low income family.

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Suppose the government imposes a $3 excise tax on the sale of sweaters in Alaska by charging suppliers $3 for each sweater sold. Using economic analysis, we would predict that: the price of sweaters will increase but by less than $3 consumers of sweaters will bear the entire amount of the tax the price of sweaters will decrease by $3 the price of sweaters will increase by $3 From the lecture video on elasticity, suppose a surfboard producer was considering lowering the price of surfboards in order to increase total revenues. Under what conditions would this idea work?) Always, because when producers lower price, consumption increases. This is the Law of Demand. When the elasticity of demand is inelastic. When the elasticity of demand is elastic. When the elasticity of demand is -0.58.
fl you know that Linda's consumption of potatoes fell from 200 pounds a year to 150 pounds a year when her income went up from $50,000 to $60,000 a year, you are able to calculate Linda's incomeelasticity of demand for potatoes. What is it? What do economists call this kind of a good?
suppose that the local government of Columbus decides to institute a tax on seltzer consumers. Before the tax, 20,000 packs of seltzer were sold every week at a price of $10 per pack. After the tax, 15,000 packs of seltzer are sold every week; consumers pay $12 per pack (including the tax), and proceeds nrecieve $5 per pack.

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Microeconomics (7th Edition)

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