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I need help on these 2 micro questions: Question 14 (4 points) Use the graphs below to answer the following question. P P Q Q
I need help on these 2 micro questions:
Question 14 (4 points) Use the graphs below to answer the following question. P P Q Q Based on What you know about relative elasticity, which set of descriptions are the best t for the demand curves shown above? O D1: Demand for gasoline when the time period for adjustment is 1 week. D2: Demand for gasoline when the time period for adjustment is 1 year. Q D1: Demand for pain relief medicine. D2: Demand for Advil, which is a specic brand name for pain relief medicine. O D1: Demand for food. D2: Demand for sailboats. 0 D1: Demand for Tide brand laundry detergent. D2: Demand for laundry detergent. Question 15 (4 points) Consider good A and good B. The demand elasticity of both goods is equal. Supply elasticity of A is greater than the supply elasticity of B. If the same size of excise tax were imposed on both goods, the tax on which good would create a larger deadweight loss? 0 Deadweight loss will be same O Tax on good B O The question is impossible to answer without knowing the prices of the two goods. 0 Tax on good A O Deadweight loss will depend upon the prices of complementary goods of the two goodsStep by Step Solution
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