This topic contains a solution. Click here to go to the answer

Author Question: Suppose the demand for wine is elastic and that initially 5 million bottles of wine are produced and ... (Read 180 times)

09madisonrousseau09

  • Hero Member
  • *****
  • Posts: 559
Suppose the demand for wine is elastic and that initially 5 million bottles of wine are produced and consumed in the United States. If the government imposes a tax of 2 per bottle of wine, the government will collect
 
  A) more than 10 million in tax revenues.
  B) 10 million in tax revenues.
  C) less than 10 million in tax revenues.
  D) an amount that may be more than, equal to, or less than 10 million in tax revenues depending on the precise elasticity of demand.

Question 2

By reviewing its sales records, Dell economists discover that when Dell lowers the price of its personal computers, the total revenue Dell obtains from the sale of its personal computers rises. Hence
 
  A) supply of Dell personal computers is elastic.
  B) demand for Dell personal computers is elastic.
  C) supply of Dell personal computers is inelastic.
  D) demand for Dell personal computers is inelastic.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

josephsuarez

  • Sr. Member
  • ****
  • Posts: 323
Answer to Question 1

C

Answer to Question 2

B




09madisonrousseau09

  • Member
  • Posts: 559
Reply 2 on: Jun 29, 2018
Wow, this really help


scottmt

  • Member
  • Posts: 322
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

For a complete list of videos, visit our video library