13. An owner of a vegetable stand finds that sales of green beans increase from 30 to 40 kg/day when prices are lowered from $.50 to $.40/kg. What is the price elasticity of demand coefficient? a. 0.27 b. 1.28 c. 3.15 d. 3.75 14. A manufacturer of a new type of tool for home use estimates that the demand elasticity coefficient for it is 3. What would be the best sales strategy for the sellers of the tool? a. Lower the price to increase sales revenue, because demand is inelastic. b. Raise the price to increase sales revenue, because demand is inelastic. c. Raise the price to increase sales revenue, because demand is elastic. d. Lower the price to increase sales revenue, because demand is elastic. 15. The government has a choice of taxing two products. The demand elasticity coefficient for product X is estimated to be 0.8, while for product Y, it is 1.2. Which product would provide the government with the most assured source of tax revenue, and why? a. Product X, because consumption will fall little even with a tax increase. b. Product Y, because its elasticity coefficient ensures little change in consumption following the tax increase. c. Product Y, because it is a necessity, while product X is a luxury. d. Product Y, because it is a luxury product, while product X is a necessity. 16. Ticket prices for playoff hockey games are higher than those for regular games. What is the best economic explanation for this? a. Since players' salaries rise for reaching the playoffs, the owners must charge higher prices. b. Demand for tickets becomes more inelastic for playoff games. c. Demand for tickets becomes more elastic for playoff games. d. Demand elasticity does not change, but owners realize that the people want to see more games