1.World famous Burpee Beer is brewed in the small town of West Burpee. Currently, the town of West Burpee levies a $2 per-case tax on all Burpee Beer, and the brewery sells 20,000 cases a year at a total price of $20 per case. The mayor of West Burpee has decided to erect a statue of herself in the town square at a cost of $20,000, and wants to raise the money from additional tax revenue from sales of Burpee Beer. She has asked each of the three town council members to come up with a plan to raise the additional $20,000, and their plans are as follows: Council member Simpson advises increasing the per-case tax by $1, Council member Milhouse advises raising the tax by $2 per case, and council member Flanders advises reducing the current tax by $0.50 per case. For each of the three council member’s plans, determine the following:

a. How many total cases of beer would need to be produced to increase tax revenue by exactly $20,000?

b. What is the price elasticity of demand for Burpee Beer if the tax revenue increases by exactly $20,000?

c. How much total revenue will Burpee Beer receive if the tax revenue increases by exactly $20,000?