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Please help me answer these questions, and I will leave good review! [MUST SHOW WORK] Draw a diagram to support your answer to the following
Please help me answer these questions, and I will leave good review!
[MUST SHOW WORK] Draw a diagram to support your answer to the following question. Suppose a sales tax on a product decreases supply. If the equilibrium quantity sold of the product is not affected, Select one: O A. the elasticity of supply is equal to the elasticity of demand. O B. demand is perfectly inelastic. O C. demand is perfectly elastic. O D. the elasticity of demand is greater than the elasticity of supply. O E. supply is perfectly elastic.Lena used to take 30 bus rides per month, when cost of each ride was $4. Now the cost of each ride is $4.80 (a 20% increase in price), and Lena is commuting by bike everywhere, not riding the bus at all. Using the simple formula, Lena's price elasticity of demand for bus rides is Select one: O A. 5. O B. zero. O C. 7.5. O D. 0.20. O E. infinity.[MUST SHOW WORK] Draw a diagram to support your answer to the following question. As we learned during our tutorial, if the market price of a product is lower than the price that can earn zero profit, Select one: O A. new businesses will enter the industry in the long run. O B. the equilibrium quantity of the product will decrease in the long-run. O C. supply will increase in the long-run. O D. businesses are breaking even. O E. the price of the product will decrease in the long-runStep by Step Solution
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