Author Question: If the government decreases the tax on cell phones, ________. A) the deadweight loss decreases ... (Read 76 times)

bcretired

  • Hero Member
  • *****
  • Posts: 525
If the government decreases the tax on cell phones, ________.
 
  A) the deadweight loss decreases
  B) the consumer surplus does not change because sellers will not lower the price of a cell phone
  C) the number of cell phones purchased does not change
  D) the market becomes less efficient because the government collects less tax revenue

Question 2

The income elasticity of demand for restaurant meals is 1.61. So
 
  A) if income increases by 16.1 percent, the quantity demanded of restaurant meals will increase by 10 percent.
  B) if income increases by 10 percent, the quantity demanded of restaurant meals will increase by 16.1 percent.
  C) restaurant meals are an income elastic normal good.
  D) Both answers B and C are correct.



CharlieArnold

  • Sr. Member
  • ****
  • Posts: 319
Answer to Question 1

A

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

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?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

For a complete list of videos, visit our video library