This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In a recent article, two economists estimated that the 37.5 increase in price that would result from ... (Read 16 times)

JMatthes

  • Hero Member
  • *****
  • Posts: 578
on: Jul 1, 2018
In a recent article, two economists estimated that the 37.5 increase in price that would result from a 75 cent tax increase on cigarettes would lead to a decrease in smoking among college students of 30.
 
  What can you conclude about the demand for cigarettes among college students? A) It is price elastic.
  B) It is price inelastic.
  C) It is unit elastic.
  D) It is perfectly inelastic.

Question 2

Suppose the observed annual quantity of steel exchanged in the European market is 30 million metric tons, and the observed market price is 90 euros per ton.
 
  If the price elasticity of demand for steel is -0.3 in Europe, what is an appropriate value for the price coefficient (b) in a linear demand function Q = a - bP?
  A) b = 0.9
  B) b = -0.9
  C) b = 0.1
  D) b = -0.1


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

javimendoza7

  • Sr. Member
  • ****
  • Posts: 293
Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

A


JMatthes

  • Member
  • Posts: 578
Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review

mochi09

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Male Asiatic Lion after a recent fight Male Asiatic Lion after a recent fight
Changes in Synaptic Density From Birth to Age 2 Synaptic connections increase throughout the first Changes in Synaptic Density From Birth to Age 2 Synaptic connections increase throughout the first
Many diesel fuel additives increase the cetane rating which results in improved fuel economy. Many diesel fuel additives increase the cetane rating which results in improved fuel economy.
Pressure is a result of the atmosphere’s mass. Pressure is a result of the atmosphere’s mass.
IPCC Temperature Increase Predictions Relative to 1986-2005 IPCC Temperature Increase Predictions Relative to 1986-2005
Recent Migration Patterns Recent Migration Patterns
Video: Pneumonia Animation

For a complete list of videos, visit our video library