1) The government decided to reduce taxes on fast-food to increase revenue. The government assumes that...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1) 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 2) A research firm finding concluded that the price elasticity of demand for movie tickets is elastic in the afternoon but inelastic in the evenings. Given this information, to increase overall revenue the theatre owners should a) Reduce the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows b) Increase the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows c) Reduce the ticket prices for the afternoon shows and increase the ticket prices for the evening shows d) Increase the ticket prices for the afternoon shows and increase the ticket prices for the evening shows 3) Jim saw a decrease in the quantity demanded for his firm's product from 8000 to 6000 units a week when he raised the price of the product from $200 to $250. Based on this information, the demand for Jim's product is a) Elastic b) Unitary elastic c) Inelastic d) Hard to determine 1) 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 2) A research firm finding concluded that the price elasticity of demand for movie tickets is elastic in the afternoon but inelastic in the evenings. Given this information, to increase overall revenue the theatre owners should a) Reduce the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows b) Increase the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows c) Reduce the ticket prices for the afternoon shows and increase the ticket prices for the evening shows d) Increase the ticket prices for the afternoon shows and increase the ticket prices for the evening shows 3) Jim saw a decrease in the quantity demanded for his firm's product from 8000 to 6000 units a week when he raised the price of the product from $200 to $250. Based on this information, the demand for Jim's product is a) Elastic b) Unitary elastic c) Inelastic d) Hard to determine
Expert Answer:
Answer rating: 100% (QA)
1 The answer is option B which is An elastic demand Elastic demand is the one in which if the price ... View the full answer
Related Book For
Managerial Economics
ISBN: 978-0133020267
7th edition
Authors: Paul Keat, Philip K Young, Steve Erfle
Posted Date:
Students also viewed these accounting questions
-
A research firm finding concluded that the price elasticity of demand for movie tickets is elastic in the afternoon but inelastic in the evenings. Given this information, to increase overall revenue...
-
1. Jim saw a decrease in the quantity demanded for his firm's product from 8000 to 6000 units a week when he raised the price of the product from $200 to $250. Based on this information, the demand...
-
In Table, the price elasticity of demand for Kelloggs Corn Flakes includes a wide range of estimates. It turns out one end of the range is observed for low income households, while the other is...
-
a1a2 (d) Suppose a Cobb Douglass production function with two inputs and exponents inside the production function y = xx22 that are less than one. Derive the profit maximizing choices of x1, x2, andy...
-
Midwestern University is considering replacing some Xerox copiers with faster copiers purchased from Brother. The administration is very concerned about the rising costs of operations during the last...
-
DVD King sells Toshiba XD-250 DVD players. Each day between 0 and 4 customers arrive to purchase these dishes with the following probability distribution: Number of Customers Probability 0...
-
The following production information about quality costs has been gathered for September: Using these data, calculate the following: a. Total cost to rework b. Profit lost from not reworking all...
-
Samantha Green owns and operates Twigs Tree Trimming Service. Recall from Chapter 3 that Samantha has a degree from a forestry program, and recently opened her business in Winnipeg. Her business...
-
A happily married couple has three children and their youngest has just moved out to attend college. Thus, they are now considered "empty nesters". Based on the research presented in the textbook, if...
-
Forecasting with the Parsimonious Method and Estimating Share Value Using the ROPI Model Following are income statements and balance sheets for Cisco Systems. Cisco Systems Consolidated Statements of...
-
Problem 12-2 PV of Depreciation Tax Benefits (LG12-4) Your company is considering a new project that will require $848,000 of new equipment at the start of the project. The equipment will have a...
-
A customer walks in and asks for financial advice. He asks Person A what are the 3 best Tech Stocks to invest in, in terms of PE Ratio and Current Yield. He also asks Person B what are the 3 best...
-
If the Electric Potential (V) for a negative charge (-Q) at a distance 200 cm is equal to -11250 v. Calculate the electric potential energy if another negative charge Q = -2.42 mC is placed at the...
-
Could exchange rate fluctuations affect the regression models offered by Dr. Dubin in the Bali case? Hint: if exchange rate fluctuations were not included in the regression models by Dubin (or by...
-
T Flip-Flop Component Name(s) [print] The 74-74 is a dual D flip-flop (DFF), with indepen- dent preset, reset, and clock inputs for each flip-flop. Note that the preset (PRE on the pinout, 5 on the...
-
The crankshaft of a four-cylinder in-line air compressor engine rotating with a speed of oo is shown in the figure. For each cylinder, the crank radius is 25 mm, the connecting rod length is 90 mm...
-
(1) The system below consists of a spring attached to the end of a cantilever beam of span 1.8m, E=70 GPa, square cross-section of 20mm x 20mm. If a mass is then attached to a spring and damper as...
-
This problem continues the Draper Consulting, Inc., situation from Problem 12-45 of Chapter 12. In October, Draper has the following transactions related to its common shares: Oct 1 Draper...
-
You own a large collection of fine wines. You now decide that you must liquidate this valuable asset. However, you predict that the value of your collection will rise in the next few years. The...
-
Sam Parkington has a nontransferable option to mine for gold on a certain piece of land. He has three choices of action: a. He can start mining immediately. b. He can conduct further tests to see...
-
An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows: The marginal operating cost of each unit of quantity is $5. (Hint:...
-
A DFD is a representation of which of the following? a. relationship among modules, data, and programs of an AIS b. flow of data in an organization c. decision rules in a computer program d. computer...
-
Which of the following statements is false? a. Flowcharts make use of many symbols. b. A flowchart emphasizes the flow of documents or records containing data. c. DFDs help convey the timing of...
-
For each of the following scenarios identify which data processing method (batch or online, real-time) would be the most appropriate. a. Make an airline reservation b. Register for a university...
Study smarter with the SolutionInn App