A) Under what circumstances will a tax on a product be passed along to consumers?

B) When the price of a movie ticket changes from $5 to $7, the quantity demanded decreases from 200 to 120 tickets per day. Use the mid-point formula to calculate the price elasticity of demand. Is the demand for movie tickets elastic or inelastic?

C) Suppose the price elasticity of demand for petrol is 0.2 in the short run and 0.7 in the long run. If the price of petrol rises 28 per cent, what effect on quantity demanded will this have in the short run? In the long run?