Author Question: The government decided to reduce taxes on fast-food to increase revenue. The government assumes that ... (Read 102 times)

Pea0909berry · **on:** Jul 1, 2018

The government decided to reduce taxes on fast-food to increase revenue. The government assumes that fast-food products have
a. An inelastic demand
b. An elastic demand
c. A demand curve that is upward sloping
d. Unitary elastic demand curve

Question 2

If the apartment owner decides to fine both the roommates if the apartment is dirty, such that now if neither of them clean they each get a 5 utility loss, what would the new equilibrium be now?
a. John cleans, Joe doesn't
b. Joe cleans, John doesn't
c. Neither of them clean the apartment
d. Both A&B