Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. It is the explanation that is important. A1-1. Theoretically, taxes on the sales of sugary soft drinks are perfect; they reduce consumption dramatically and raise a lot of revenue. [Hint: Assume a per-unit tax and a horizontal supply curve for soft drinks.] A1-2. If the demand function for chicken is given by Qc = 100 – .25Pc + 10Pt + 100M, where Qc is the quantity of chicken demanded, Pc is the price of chicken, Pt is price of turkey, and M is the average income of consumers, then we can conclude that chicken has a downward sloping demand curve, is a substitute for turkey, and is a normal good. Please answer both and write neatly please
Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. It is the explanation that is important.
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A1-1. Theoretically, taxes on the sales of sugary soft drinks are perfect; they reduce consumption dramatically and raise a lot of revenue. [Hint: Assume a per-unit tax and a horizontal supply curve for soft drinks.]
A1-2. If the
demand function for chicken is given by Qc = 100 – .25Pc + 10Pt + 100M, where Qc is the quantity of chicken demanded, Pc is theprice of chicken, Pt is price of turkey, and M is the average income of consumers, then we can conclude that chicken has a downward sloping demand curve, is a substitute for turkey, and is a normal good.
Please answer both and write neatly please
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