If a firm offers a senior citizen discount
A) the firm expects the average senior citizen to have a lower price elasticity of demand.
B) the firm expects the average senior citizen to have a higher price elasticity of demand.
C) senior citizens may be offended.
D) it may be prosecuted for discrimination.
Question 2
Suppose the demand curve for a good is downward sloping and the supply curve is upward sloping. At the market equilibrium, if demand is more elastic than supply in absolute value, a 1 specific tax will
A) raise the price to consumers by 50 cents.
B) raise the price to consumers by less than 50 cents.
C) raise the price to consumers by more than 50 cents.
D) raise the price to consumers by 1.
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