Multiple Choice
If the number of highway deaths among young people is roughly proportional to their beer consumption and young peoples' elasticity of demand for beer is 1.5, then to decrease highway deaths of young people by 15 percent, taxes would need to be increased enough to increase the price of beer by
A) 1%.
B) 1.5%.
C) 10%.
D) 15%.
Correct Answer:
Verified
Correct Answer:
Verified
Q208: Which of the following statements is CORRECT
Q209: If the quantity supplied is perfectly inelastic
Q210: Governments like to know the price elasticity
Q211: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6799/.jpg" alt=" Table 4.2 -Refer
Q212: The percentage change in the quantity of
Q214: If a firm currently sells a product
Q215: If the demand for new cars is
Q216: If the demand for school ball caps
Q217: Suppose that the income elasticity of demand
Q218: Draw the demand curve for a good