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Author Question: The government heavily subsidizes the production of ethanol to encourage the purchase of ethanol ... (Read 217 times)

CBme

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on: Jul 1, 2018
The government heavily subsidizes the production of ethanol to encourage the purchase of ethanol over oil, a less environmentally friendly form of energy. Given that the supply elasticity of ethanol, , is estimated to be about 0.13, what would the elasticity of demand, , have to be for consumers to receive at least half of the subsidy, and therefore encourage ethanol consumption?
 
  A)  must be less than 0.13.
  B)  must be greater than 0.13.
  C)  must be more inelastic than the elasticity of supply.
  D) Both A and C.

Question 2

If the supply curve is perfectly inelastic and the demand curve is a downward sloping straight line, what is the effect of a consumer ad valorem tax on equilibrium price and quantity?
 
  A) Price remains unchanged and quantity increases.
  B) Price decreases and quantity increases.
  C) Price decreases and quantity remains unchanged.
  D) Price and quantity decrease.
Microeconomics ¦ Perloff ¦ 8th Edition
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bulacsom

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Reply #1 on: Jul 1, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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CBme

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Reply 2 on: Jul 1, 2018
:D TYSM

milbourne11

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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