The Government of your country wants to discourage the frequent use of alcoholic E decided to impose a tax on every alcoholic drink at the point of sale. What is the effe quantity of alcoholic beverages consumed?
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- 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?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 . 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.If the supply of and demand for a product increase at the same time, then equilibrium O quantity and equilibrium price must both decline. O quantity must decline, but equilibrium price may either rise, fall, or remain unchanged. O price must fall, but equilibrium quantity may either rise, fall, or remain unchanged. O quantity must increase, but equilibrium price may either rise, fall, or remain unchanged.
- 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 -0.25Suppose an economic boom causes incomes to increase and, at the same time, drives up wages for the sales representatives who work for cell phone companies. Assume that smartphones are a normal good. This will cause the: O price of cell phones and the equilibrium quantity to rise. O price of cell phones to rise, but the change in the equilibrium quantity is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply. O price of cell phones and the equilibrium quantity to fall. O quantity of cell phones to rise, but the change in the equilibrium price is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply.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
- The following graph shows the demand for a good. PRICE (Dollars per unit) 280 180 140 40- 0 12 Region Between X and Y Between W and X Between Y and Z Z O True O False 42 54 QUANTITY (Units) For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic, (approximately) unit elastic, or inelastic. 84 W O O Demand Elastic Inelastic Unit Elastic O O O O O O O (?) True or False: The slope of the demand curve is not equal to the value of the price elasticity of demand.What is the formula for the price elasticity of demand? The formula for the price elasticity of demand is O A. the change in quantity demanded divided by the change in price. O B. the percentage change in quantity supplied divided by the percentage change in quantity demanded. OC. the percentage change in quantity demanded divided by the percentage change in price. O D. the percentage change in quantity demanded divided by the price. O E. the percentage change in price divided by the percentage change in quantity demanded. Why isn't elasticity just measured by the slope of the demand curve? O A. The slope of the demand curve changes along the curve. O B. Price elasticity of demand is the same as the slope of the demand curve. OC. The slope of the demand curve is negative. O D. The measurement of slope is sensitive to the units chosen for quantity and price. O E. The slope of the demand curve is often unknown.You're curious to know whether a good's price will rise or fall when we're entering a recession (and incomes fall). You'd need to find out whether the good is O a complement or a substitute O sold in a competitive market or in a monopoly a normal good or an inferior good on the demand side or supply side of the market
- The demand for a given good will decrease when the price of its substitute and the demand for a given good also decreases when the price of its complement Select one: O a. None of the provided answers are correct O b. rises; rises O c. falls; falls O d. falls; rises Assume a demand curve for coffee; Which of the following would NOT shift the demand curve for coffee? Select one: O a. an increase in wages O b. a decrease in the price of tea O c. price of coffee changes O d. a change in taste for teaA new cattle feed has been found to increase the amount of milk each cow produces. Which of the following is likely to be the impact on the market for milk if this cattle feed is used by most dairies? O a. a leftward shift of the supply curve of milk O b. a rightward shift of the supply curve of milk O C. an increase in the price of milk O d. a decrease in the quantity demanded of milk O e. an increase in the demand for milkSuppose 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.
