Explain and demonstrate using appropriate examples, how elasticity when it is zero is applied at the level of the government with respect to the setting of prices for various types of goods and services. (Macroeconomics)

Q: What would be the absolute value of the elasticity if demand is inelastic?    A. greater than 1  B.…

A: Elasticity of demand refers to the degree of responsive of a good or a service to change in its…

Q: Compared to 2020, the price of computer chips is much higher today and revenues from computer chips…

A: Elasticity of demand is often measured by taking into consideration its impact on the total revenue…

Q: Explain the economic concept of elasticity. Apply it to at least one real-world example in detail

A: In general elasticity means changes, If we known about the economic concept of elasticity measures…

Q: Price elasticity of demand (PED): Applications of concepts of elasticity PED and business…

A: Prive elasticity of demand refers to the percentage change in quantity demanded due to percentage…

Q: For each of the following pair of goods, which good would you expect to have more price elastic…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Assuming that the quantity supplied amounted to 20 units when the price was 30 dinars, and the price…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: For each of the following pairs of goods, which good would you expect to have more elastic demand…

A: Hi! Thank you for the question but as per the guidelines, we can only answer three sub-parts of a…

Q: The government wants to increase the taxes on alcohol to increase tax revenue. This tax would only…

A: Price elasticity of demand refers to the responsiveness of demand due to change in price. Elastic…

Q: Explain the concept of elasticity of demand with respect to changes in prices and its applications.

A: Elasticity of demand  The elasticity of demand (eq, p) is defined as the economic measure of…

Q: At Fenway Park, home of the Boston Red Sox, seating is limited at 39,000,  Hence, the number of…

A: The demand curve of the good shows the quantity demanded of the good at various possible price…

Q: Suppose the current price of gasoline is $1.50/L. If a government places a $0.25/L tax on gasoline,…

A: The degree of sensitivity of demand for a commodity to changes in its price is referred to as price…

Q: When demand is less elastic than supply, demanders pay a larger share of the tax and sellers pay a…

A: When tax is imposed, an incidence or burden of tax on market participants depends upon their…

Q: If the supply curve is more elastic relative to demand, then this suggests that the

A: Elasticity is a measure of the degree of change in demand or supply of a commodity in response to…

Q: Describe and briefly explain the importance of the concept of elasticity. Explain and demonstrate…

A: The demand and the supply in the market are the market forces which determine the quantity and the…

Q: Question 12 For which of these goods would the market demand be more elastic, fantasy novels or…

A: Elasticity is the responsiveness of quantity of a good due to change in the price.

Q: Describe the general appearance of a demand or a supply curve with zero elasticity

A: Zero elasticity means zero responsiveness of quantity supplied or demanded to price change. It has a…

Q: The Ramesy rule suggest that society should

A: A tax is a compulsory payment which has to be made to the government on purchase of goods and…

Q: In the market for widgets, 800,000 units are currently being sold every year at the going price of…

A: (A) Proponents of the bill that claim it would increase $2.4 million in government revenue every…

Q: The price elasticity of demand is -3, the price elasticity of supply is 1. The government imposes a…

A: Elasticity helps to determine the tax burden. Higher than elasticity, lower the tax burden. Lower…

Q: In the graph, when the elasticity moves to the left means : a. Unit in demand or supply inelastic…

A: Elasticity is a term used in economics to describe how the aggregate quantity demanded of an item or…

Q: Explain and demonstrate using appropriate examples how elasticity when it is zero is applied at the…

A: What does an elasticity zero value imply? inelastic If elasticity = 0, it is said to be 'totally'…

Q: The concept of elasticity is used to     Analyze how much the economy can expand     Determine the…

A: Elasticity is an economic metric that quantifies how the amount required for an item or service…

Q: Suppose the price elasticity of demand for bread is 2. If the price of bread falls by 8 percent, the…

A: The formula is: Price elasticity of demand(E)=% change in quantity% change in price -2=% change in…

Q: is elasticity a consumer or producer good? justify your answer

A: The quantity demanded of the good refers to the amount of the good consumers are willing and able to…

Q: elasticity to rising government size. True or false, and explain

A: Wagner's law of state is known as the law of increase of the spending of state and is being named…

Q: "If the government wishes to tax certain goods, it should tax goods that have inelastic rather than…

A: ‘Elasticity(El)’ essentially means the percentage(%) change in Qd divided percentage(%) change in P.…

Q: Explain and demonstrate using appropriate examples how elasticity when it is zero is applied at the…

A: The demand for a good or service is perfectly inelastic or zero when a change in the product's price…

Q: Explain how a policymaker who is considering how to raise tax revenues from fuel and vehicles should…

A: The elasticity of demand is a concept which measures the responsiveness of the change in the…

Q: For each of the following pairs of goods, which good would you expect to have more elastic demand…

A: Price elasticity of demand is the demand's responsiveness to the price. The degree of change in…

Q: What determines by how much the price goes up when the government implements a price floor?…

A: Price control is a form of government control over the free market to increase welfare. Price floor…

Q: Elasticity plays a large role in tax incidence. Which of the following is most true regarding a tax…

A: Elasticity refers to the responsiveness of the change in the demand and the supply of the goods and…

Q: At Fenway Park, home of the Boston Red Sox, seating is limited at 39,000, Hence, the number of…

A: Answer-

Q: which good would you expect to have more price elastic demand and why? d. Lemonadeandwater.

A: It was Alfred Marshal who first used the concept of elasticity in economics. The word elasticity…

Q: Given the demand equation   p=250q+20   where 20≤q≤105​, for what value of q is |η| a​ maximum? For…

A: Price elasticity of demand is a measurement of the change in consumption of a product in relation to…

Q: The Australian government have suggested that they might need to increase GST to help fund the…

A: Elastic is an economic term that refers to a shift in customer and seller behavior in reaction to a…

Q: How does a sugar tax that increases the final price of non-alcoholic beverages with sugar address…

A: Consumers must feel the effects of a soft drink tax in order for it to be effective. If firms just…

Q: Discuss if it more useful for governments to have knowledge of the price elasticity of demand or the…

A: The price elasticity of demand measures the responsiveness in the quantity demanded of a commodity…

Q: Suppose a ticket to a Rolling Stones concert is $400 and at that price, the quantity of tickets…

A: The price elasticity of demand is the ratio of two variables namely percentage change in quantity…

Q: For which goods or services will the demand be relatively more or relatively less elastic?  Explain…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: If a good has elastic demand and its price is decreased, what happens to the total revenue? Explain…

A: Elasticity of Demand = Ed=%age Change in Quantity%age Change in Price If a good has elastic demand…

Q: Economists have observed that spending on restaurant meals declines more during economic downturns…

A: Elasticity refers to the responsiveness of quantity demanded with changes in the price or income.…

Q: Sally Henin has a price elasticity of demand for gasoline of -0.8. Her income elasticity for…

A: The price elasticity of demand is expressed as the ratio of the percentage change in quantity…

Q: If you compare the purchase of salt to the purchase of meat in the typical family budget, you would…

A: Price Elasticity of Demand measures the percentage change in quantity demanded due to percentage…