Can you tutor me on answering the following questions? I found most of these question on course hero, however they don't have explanations on how they got the answer. Please explain to help me understand.

1.Jim has estimated elasticity of demand for gasoline to be -0.7 in the short-run and -1.8 in the long run.A decrease in taxes on gasoline would:

a.lower tax revenue in both the short and long run.

b.raise tax revenue in both the short and long run.

c.raise tax revenue in the short run but lower tax revenue in the long run.

d.lower tax revenue in the short run but raise tax revenue in the long run.

2.Jim recently graduated from college. His income increased tremendously from earning $5000 a year to $60,000 a year. Jim decided that instead of renting he will buy a house. This implies that

a.Houses are normal goods for Jim

b.Houses are inferior goods for Jim

c.Renting and Owning are complementary for Jim

d.Need information on the price of houses

3.Christine has purchased five bananas and is considering the purchase of a sixth.It is likely she will purchase the sixth banana if

a.the marginal value she gets from the sixth banana is lower than its price.

b.the marginal benefit of the sixth banana exceeds its price.

c.the average value of the sixth bananas exceeds the price.

d.the total personal value of six bananas exceeds the total expenditure to purchase six bananas.

4.Buyers consider Marlboro cigarettes and Budweiser beer to be complements. If Marlboro just increased its prices, what would you expect to occur in the Budweiser market?

a.Demand would rise, and Budweiser would reduce price.

b.Demand would fall, and Budweiser would reduce price.

c.Demand would fall, and Budweiser would increase price.

d.Demand would rise, and Budweiser would increase supply.

5.Which of the following is the reason for the existence of consumer surplus?

a.Consumers can purchase goods that they "want" in addition to what they "need."

b.Consumers can occasionally purchase products for less than their production cost.

c.Some consumers receive temporary discounts that result in below-market prices.

d.Some consumers are willing to pay more than the market price.

6.A bakery currently sells chocolate chip cookies at a price of $16 per dozen. The marginal cost per dozen is $8.The cookies are becoming more popular with customers and so the bakery owner is considering raising the price to $20/dozen.What percentage of customers must be maintained to ensure that the price increase is profitable? (Show your calculations)

a.28.0%

b.33.3%

c.66.6%

d.72.0%

7.A firm adopts a technology that allows you to increase your output by 15%.If the elasticity of demand in the US is -3, how should you adjust your price if you want to sell all of your output? (Show your calculations)

a.5% lower.

b.0.5% lower.

c.15% higher.

d.15% lower.

Two problems about elasticity and markup (desired vs actual margin):

8. Elasticity of T-shirt Sales

George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50 he sold only 4,000 T-shirts. What is the demand elasticity?

If George's marginal cost is $4 per shirt, what is his desired markup and what is his initial actual markup?

Was raising the price profitable?

9. Promotional Pricing

An end-of-aisle price promotion changes the price elasticity of a good from -2 to -3. If the normal price is $10, what should the (new) promotional price be?