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

Author Question: The government heavily subsidizes the production of ethanol to encourage the purchase of ethanol ... (Read 215 times)

CBme

  • Hero Member
  • *****
  • Posts: 548
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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bulacsom

  • Sr. Member
  • ****
  • Posts: 329
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.
Answer Preview
Only 29% of students answer this correctly


CBme

  • Member
  • Posts: 548
Reply 2 on: Jul 1, 2018
Wow, this really help

sultansheikh

  • Member
  • Posts: 335
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

Thyroid conditions may make getting pregnant impossible.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

The production of transgenic crops The production of transgenic crops
The heavily worn, and sometimes cutmarked, anterior teeth of Neadertals suggest that these teeth wer The heavily worn, and sometimes cutmarked, anterior teeth of Neadertals suggest that these teeth wer
This graphic illustrates the original systems model of politics advanced by David Easton. Politics This graphic illustrates the original systems model of politics advanced by David Easton. Politics
Great Britain Production of Glass 1800s Great Britain Production of Glass 1800s
Antineutrophil cytoplasmic antibody staining patterns. Indirect immunofluorescence of ethanol-fixed ... Antineutrophil cytoplasmic antibody staining patterns. Indirect immunofluorescence of ethanol-fixed ...
Human of the planet's net primary production and appropriation of NPP Human of the planet's net primary production and appropriation of NPP
Video: Virtual Tour of the Eye Animation

For a complete list of videos, visit our video library