) Elasticity tells us how responsive consumers and producers are to changes in the price of a good. a. If a firm wishes to increase the total revenue they receive from selling their good, under what conditions should they lower the price rather than raise the price? BRIEFLY EXPLAIN. b. Assume the government puts a tax on large SUVS. Under what conditions would producers bear more of the burden of the tax? BRIEFLY EXPLAIN. 2. (9 pts.) We examine firms' decisions in the short run and in the long run. a. In response to increased prices for hybrid vehicles, Ford is deciding how many more to produce this quarter. Is this a short run or a long run decision? BRIEFLY EXPLAIN WHY. b. What would make the long run differ from the short run for Ford? c. Why would Ford want to consider long run decisions as well as short run decisions? 3. (17 pts.)Claire spent several years working for Dairy Queen, where her salary was $60,000. She decided that she wanted to be "her own boss", and so she left her job at Dairy Queen