clear chromate 8.87 Origin China Ba Price 687 09 X + ta/Local/Microsoft/Windows/INetCache/Content.Outlook/UGBPQ824/Microeconomics_Fi Read aloud Ask Bing Al 2 of 2 4. Assume you own an educational company and offer several educational services. For one year, you change the price for different services and record information about how many people buy your service. You thus gather information about the elasticity of demand. If you wish to raise as much revenue as possible from your company, where will you decide to change the price: for the services that have inelastic demand or elastic or unit elastic? Explain your answer. 5. Your company operates in a perfectly competitive market. You have been told that advertising can help you increase your sales in the short run. Would you create an aggressive advertising campaign for your product? 6. In November 2018, there was a huge debate in Spain over who should pay the mortgage creation tax. Should the buyers (consumers) or the sellers of the mortgage (the banks) pay the tax? In early 2018, the civil division of the Supreme Court clearly ruled that the tax on mortgages should be paid by consumers and not banks. However, on the 18th of October, the administration division pronounced the other way, that banks should pay. Using the knowledge that you have learned from this course, what is your recommendation to Spanish people? Explain what you think about their debate. Does the incidence of the tax depend on who pays the tax? Small mom-and-pop firms like inner-city grocery stores, sometimes exist even though they do not earn economic profits. How can you explain this? 8. What would the gasoline price elasticity of supply mean to UPS or FedEx? 9. Consider the demand for ice cream if the price for a substitute good increases and the price for a complement good increases, can you tell for sure what will happen to the demand for ice cream? Explain your answer. his study source was d gro.com on 09.1 2-2023 06:42:10 GMT -05:00