Question
Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate . It is the explanation
Explain why each of the following statements is True, False, or Uncertain according to economic principles.Use diagrams where appropriate. It is the explanation that is important.
A1-1. Theoretically, taxes on the sales of sugary soft drinks are perfect; they reduce consumption dramatically and raise a lot of revenue. [Hint: Assume a per-unit tax and a horizontal supply curve for soft drinks.]
A1-2. If the demand function for chicken is given by Qc = 100 - .25Pc + 10Pt + 100M, where Qc is the quantity of chicken demanded, Pc is the price of chicken, Pt is price of turkey, and M is the average income of consumers, then we can conclude that chicken has a downward sloping demand curve, is a substitute for turkey, and is a normal good.
Please answer both and write neatly please
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