The Government of your country wants to discourage the frequent use of alcoholic beverages, in this attempt theydecided to impose a tax on every alcoholic drink at the point of sale. What is the effect of this tax on the price andquantity of alcoholic beverages consumed?Select one:O .Both the price and the quantity would rise.O b. The price would rise and the quantity would fall.Oc.Both the price and the quantity would fall.Od.The price would fall and the quantity would rise.

Equilibrium is achieved at the output level where Qs equals Qd.

Answered: Jernment of your country wants to…

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 3TY

See similar textbooks

Similar questions

Suppose there is a soda tax to curb obesity. What should a reduction in the soda tax do to the supply of sodas and to the equilibrium price and quantity? Canyon show this graphically? Hint: Assume that the soda tax is collected from the sellers.
What is the difference between the demand and the quantity demanded of a product, say milk? Explain in words and show the difference on a graph with a demand curve for milk.
What does a downward-sloping demand curve mean about how buyers in a market will react to a higher price?
Using the midpoint formula for calculating the elasticity of supply, if the price of a good rose from $95 to $105, what would be the elasticity of supply if the quantity supplied changed from a. 38 to 42? b. 78 to 82? c. 54 to 66?
While analyzing the semiconductor industry you notice that when the price of ultrapure water rises 2%, the demand for chip grade silicon declines 8%. From this data what appears to be true? O A Chip grade silicon is a substitute to Ultrapure water with a cross-price elasticity of +4. O B. Chip grade silicon is a complement to Ultrapure water with a cross-price elasticity of +0.25 O C. Chip grade silicon is a complement to Ultrapure water with a cross-price elasticity of-4. O D. Chip grade silicon is a substitute to Ultrapure water with a cross-price elasticity of -0.25
The Government of your country wants to discourage the frequent use of alcoholic beverages, in this attempt they decided to impose a tax on every alcoholic drink at the point of sale. What is the effect of this tax on the price and quantity of alcoholic beverages consumed? Select one: O a. The price would fall and the quantity would rise. O b. The price would rise and the quantity would fall. O c. Both the price and the quantity would rise. O d. Both the price and the quantity would fall. Next page IMG 7969.jpeg JPEO
The price elasticity of demand measures which of the following? Select one: O a. the slope of the demand curve O b. the rate at which demand changes when price changes O c. None of these correctly defines what price elasticity of demand measures. O d. how responsive the quantity demanded is to changes.in price O e. the percentage-slope of the demand curve
Which of the following goods would be expected to have the lowest price elasticity of demand? Select one: O a. movie tickets O b. video rentals O c. milk O d. mustang convertible
Consider the table below. Assuming the law of demand holds, the cell labeled "?" could be which of the following quantities? Quantity of movies Demanded 165 ? O O O O O Price of a movie $15 $17 167 173 165 181 153
A U.S. business sells milk to consumers in France. Which situation would most likely cause demand for milk to rise in France? O A. The French population declines steadily due to years of economic problems. O B. Cheese and other products made from milk become less popular in France. O C. A popular French nutrition author claims that milk is bad for people's health. D. French consumers expect the price of milk to increase in the future.
Looking at the relationship between elasticity and total revenue, we can see that Select one: O a. b and c b. when demand is unit elastic, small price changes don't change total revenue C. when a good is price inelastic, revenue increases when prices increase O d. when a good is price elastic, revenue increases when prices increase O e. total revenue is maximized when the elasticity has stopped changing
Suppose that video game discs are a normal good.. If the income of video game players increases, you predict that in the market for video games, O both equilibrium price and quantity will fal. O equilibrium price will increase, and quantity will decrease. o both equilibrium price and quantity will increase. O equilibrium price will fall, but quantity will increase.

SEE MORE QUESTIONS

Recommended textbooks for you

MACROECONOMICS

Economics

ISBN:

9781337794985

Author:

Baumol

Publisher:

CENGAGE L

Principles of Economics 2e

Economics

ISBN:

9781947172364

Author:

Steven A. Greenlaw; David Shapiro

Publisher:

OpenStax

Exploring Economics

Economics

ISBN:

9781544336329

Author:

Robert L. Sexton

Publisher:

SAGE Publications, Inc

MACROECONOMICS

Economics

ISBN:

9781337794985

Author:

Baumol

Publisher:

CENGAGE L

Principles of Economics 2e

Economics

ISBN:

9781947172364

Author:

Steven A. Greenlaw; David Shapiro

Publisher:

OpenStax

Exploring Economics

Economics

ISBN:

9781544336329

Author:

Robert L. Sexton

Publisher:

SAGE Publications, Inc

SEE MORE TEXTBOOKS