5. Suppose in the spring of 2023 the price of softwood lumber increases from $1.31 per board foot to $2.14 per board footand quantity demanded drops by 7.81% this would mean the _____% increase in price was __________ to make demand unit elastic. This would also mean that a tax lumber designed to pay for climate change research would impact producers __________________ than consumers and government would see __________ revenue from this tax. 48.12; not enough; less, raise1.725; enough; Less, lower .1623; enough; More, greater 41.99; not enough; Less, greater Based on your answer to question #5 the price elasticity of demand for lumber equals_______ because: 1.725; there are insufficient substitutes for lumber in home building.48.12; the percentage change in quantity demanded is less than the percentage change in price..16; lumber is a necessity during a boom in housing production..0761; the percentage of income it takes to buy lumber is small for home builders.

A demand curve is a common tool used in economics to illustrate the relationship between quantity…

Answered: . Suppose in the spring of 2023 the…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 6PA: The price of coffee rose sharply last month, while the quantity sold remained the same. Five people...

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5. Suppose in the spring of 2023 the price of softwood lumber increases from $1.31 per board foot to $2.14 per board footand quantity demanded drops by 7.81% this would mean the _____% increase in price was __________ to make demand unit elastic. This would also mean that a tax lumber designed to pay for climate change research would impact producers __________________ than consumers and government would see __________ revenue from this tax.

48.12; not enough; less, raise
1.725; enough; Less, lower
.1623; enough; More, greater
41.99; not enough; Less, greater

Based on your answer to question #5 the price elasticity of demand for lumber equals_______ because:

1.725; there are insufficient substitutes for lumber in home building.
48.12; the percentage change in quantity demanded is less than the percentage change in price.
.16; lumber is a necessity during a boom in housing production.
.0761; the percentage of income it takes to buy lumber is small for home builders.

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