Recent research estimates that the short-run price elasticity of demand for gasoline in the U.S. is -0.3, and the long-run price elasticity of demand is -1.4. What happens if the govenment increases the federal gasoline tax?
A) Consumer expenditures on gasoline increase over the short run and long run
B) Consumer expenditures on gasoline decline over the short run and increase over the long run
C) Consumer expenditures on gasoline increase over the short run and decline over the long run
D) Consumer expenditures on gasoline decrease over the short run and long run
Question 2
A few years ago, the city of Seattle, Washington, considered imposing a specific tax on all espresso-based coffee drinks sold in the city. The extra tax revenue generated would have been used to fund after-school programs for low-income children.
The coffee-house owners (firms) agreed that this would be a good program to fund, but they argued that the tax would sharply reduce their sales volume and they would pay most of the tax burden. This claim is true if: A) the demand for espresso-based coffee is more inelastic than supply.
B) the demand for espresso-based coffee is more elastic than supply.
C) there are no close substitutes for espresso-based coffee drinks.
D) espresso-based coffee drinks can be produced at constant marginal cost.
An example of genetic homology: a comparison of a short amino acid sequence within the p53 protein f
Intussusception. A short length of small intestine has telescoped into itself.
With the research technique called brainbow, each neuron is labeled with a different color, ...
How to create a price index to calculate inflation for a basket of goods
Controlled Scientific Experiments Scientists use experimental research to test hypotheses
RESEARCH TECHNIQUE