im 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.

An economist estimated the cross-price elasticity for peanut butter and jelly to be -1.5. Based on this information, we know the goods are:

a.inferior goods.

b.complements.

c.inelastic.

d.substitutes.

Average costs:

a.fall at all levels of output

b.are falling when marginal costs are below average costs and rising when marginal costs are above average costs

c.are falling when marginal costs are above average costs and rising when marginal costs are below average costs

d.does not vary with output