X + -> C a https://brightspace.ccc.edu/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=252173&isprv=&drc=0&qi=832583&cfql=0&dnb=0&fromQB=0&inProgress=1 Midterm Exam X Therese Folefac: Attempt 1 Page 1: Question 8 (7 points) 2 W V For a good with the following demand: 6 Quantity V Price Demanded 6000 $20 8 9 -- -- 14,000 $15 (a) Calculate the price elasticity of demand using the Midpoint Method. 10 11 12 (b) Is the demand for this good considered elastic or inelastic? 14 15 (c) Do you think it is more likely that the average consumer will consider this good a V V necessity or a luxury? How did you determine your answer? (d) If sellers' production costs rise, will they be able to pass these higher costs onto the buyers in the form of higher prices? Explain. A 83.F Q Search ENG 12:53 PM Windy US 7/20/2023X + -> C a https://brightspace.ccc.edu/d21/Ims/quizzing/user/attempt/quiz_start_frame_auto.d21?ou=252173&isprv=&drc=0&qi=832583&cfql=0&dnb=0&fromQB=0&inProgress=1 Midterm Exam X Therese Folefac: Attempt 1 Page 1: 2 ( w 6 Question 9 (5 points) 8 9 -- -- Paula sells boomerangs. In attempt to increase sales, she discounts the price of boomerangs by 15%. As a result of the sale, she finds that her revenues fall from 10 11 12 $220,000 from the previous month to $180,000. (a) Based on this information, would you estimate that the price elasticity of demand 14 15 for boomerangs is elastic or inelastic? V V (b) Briefly (in 1-2 sentences) explain why the sale failed to increase her revenue. (c) The local government decides to start taxing boomerangs. If the price elasticity of supply of boomerangs is 1.6, who will pay more of the tax: buyers or sellers? (d) How can you determine whether buyers or sellers will pay a greater share of the tax? A 83.F Q Search ENG 12:53 PM Windy US 7/20/2023