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 a tax increase that increases the price of beer by 20% would roughly reduced highway deaths of young people by
A) 1.5%.
B) 13.33%.
C) 20%.
D) 30%.
Correct Answer:

Verified
Correct Answer:
Verified
Q42: Recall the Application about the price of
Q43: Suppose that the elasticity of demand for
Q44: Suppose that the price elasticity of supply
Q45: When the price of pens went from
Q46: Suppose that ABC Beer Brewer faces a
Q48: The percentage change in the quantity of
Q49: If the elasticity of demand for cigarettes
Q50: One of the business revolutions of the
Q51: A bumper crop of wheat could be
Q52: If an increase in the price of