Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 11, 2022

Suppose that after an excise tax was imposed on sofas, the price buyers paid for sofas increased by $5. Suppose further that the price

Suppose that after an excise tax was imposed on sofas, the price buyers paid for sofas increased by $5. Suppose further that the price elasticity of demand for sofas is 1.8 and the price elasticity of supply for them is 1.8. It can be concluded with certainty that the amount of the excise tax was Select one: OA. less than $5. OB. $5. OC. greater than $5 but less than $10. OD. $10. OE. greater than $10.

Step by Step Solution

★★★★★

3.38 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

Answer i It is observed that the Price elasticity of demand for sofas and price elasticit... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Statistics

Authors: Norean Sharpe, Richard Veaux, Paul Velleman

3rd Edition

978-0321944726, 321925831, 9780321944696, 321944720, 321944690, 978-0321925831

More Books

Students also viewed these Economics questions

Question

★★★★★

The pyridine N-oxide, compound A, is a new drug claimed to be useful for the treatment of senile dementia. Industrial synthesis of it is outlined below. i) Suggest a mechanism to account for Step 1...

Answered: 1 week ago

Question

★★★★★

If there is a 25 percent chance that a new machine would save a business customer $24 per day in labor costs and a 75 percent chance that the new machine would save the customer $12 per day, what is...

Answered: 1 week ago

Question

★★★★★

A drug manufacturer believes there is a 0.95 chance that the Food and Drug Administration (FDA) will approve a new drug the company plans to distribute if the results of current testing show that the...

Answered: 1 week ago

Question

★★★★★

Nine friends vote on their favorite fruit. Only one person in the group votes for kiwi. Choose the decimal that is equivalent to this fraction.

Answered: 1 week ago

Question

★★★★★

What is the purpose of adjusted gross income?

Answered: 1 week ago

Question

★★★★★

What is an R loop? In an R loop experiment, to which strand of DNA does the mRNA bind, the coding strand or the template strand?

Answered: 1 week ago

Question

★★★★★

Tell me about the other language(s) you speak.

Answered: 1 week ago

Question

★★★★★

Suppose the production possibility frontier for cheeseburgers (C) and milkshakes (M) is given by C + 2M = 600 a. Graph this function. b. Assuming that people prefer to eat two cheeseburgers with...

Answered: 1 week ago

Question

★★★★★

A spherical organism consisting of an active core covered with an inert membrane like layer is exposed to air. Oxygen ( A ) dissolves at the surface of the organism and then diffuses radially through...

Answered: 1 week ago

Question

★★★★★

Please explain the following: 1. In Scene 2 of Dutchman, Clay embarks on a rage-filled monologue against Lula and the idea that she understands anything about African American experience. What are...

Answered: 1 week ago

Question

★★★★★

THE TINY HOUSE PROJECT 13 Project Schedule Continue Project Title: The Tiny House Project Company Name Tiny House Inc. Project Manager Student Name Project Starts 1st Monday classes star 5/1/2023...

Answered: 1 week ago

Question

★★★★★

When a company runs an add stressing how their product is vastly better than the other available options, the marketer is trying to what?

Answered: 1 week ago

Question

★★★★★

1. Are there any plugins to BPMN models inKNIME? Explain. 2. Examine the similarities of workflows to BPMN processes. 3. Two modeling elements/concepts in KNIME are nodes and data. Are the...

Answered: 1 week ago

Question

★★★★★

Which are the key benefits of SAP S/4HANA Cloud for receivables management?Which of the capabilities below are included in SAP S/4HANA Cloud receivables management? Manage international trade Perform...

Answered: 1 week ago

Question

★★★★★

If your team gets together as a group to inform management that they need to be able to control the thermostat in the office to have a comfortable work environment, or else they will not be able to...

Answered: 1 week ago

Question

★★★★★

How are digital technologies changing family life? 2.) How are digital technologies changing the following social institutions: politics, education, the economy, and religion to make them better and...

Answered: 1 week ago

Question

★★★★★

Results from Yllaw Company are as follows: Operating Income 8482 total assets 15836 Current Liabilities 3566 sales 34753 Target Rate of Return (Cost of Capital) 14% Calculate Residual Income.

Answered: 1 week ago

Question

★★★★★

Show, if u(x, y) and v(x, y) are harmonic functions, that u + v must be a harmonic function but that uv need not be a harmonic function. Is e"e" a harmonic function?

Answered: 1 week ago

Question

★★★★★

Using the data from Exercise 42, develop and compare the following models. In exercise a) Fit an appropriate autoregressive model by testing for the significance of each autoregressive term. b)...

Answered: 1 week ago

Question

★★★★★

Can special study courses actually help raise SAT scores? One organization says that the 30 students they tutored achieved an average gain of 60 points when they retook the test. a) Explain why this...

Answered: 1 week ago

Question

★★★★★

AaronsAir (Exercises) could purchase a market survey from a firm that has advised the island tourist and conference bureau. He thinks their projections would help him determine whether the...

Answered: 1 week ago

Question

★★★★★

A local TV station conducted a "Pulse-Poll" about the upcoming mayoral election. Evening news viewers were invited to text in their votes, with the results to be announced on the late-night news....

Answered: 1 week ago

Question

★★★★★

A manufacturing company employs 14 project managers, 48 supervisors, and 377 laborers. In an effort to keep informed about any possible sources of employee discontent, management wants to conduct job...

Answered: 1 week ago

Question

★★★★★

Any time we conduct a survey, we must take care to avoid undercoverage. Suppose we plan to select 500 names from the city phone book, call their homes between noon and 4 P.M., and interview whoever...

Answered: 1 week ago

Previous Question Next Question