If the government could charge different entry or user fees at different national parks to raise revenue for the maintenance of the parks, it should charge Select one: a. lower prices at parks where demand is relatively inelastic. b. the same prices for all the national parks. c. higher prices at parks where demand is relatively inelastic. d. higher prices at parks where demand is relatively elastic. e. a percentage of the estimated cost of building the park
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- You are the manager of a gas station and your goal is to maximize profits. Based on your past experience, the elasticity of demand by Texans for a car wash is -4, while the elasticity of demand by non-Texans for a car was is -6. If you charge Texans $20 for a car wash, how much should you charge a man with Oklahoma license plates for a car wash? a. $20.00 b. $1.50 c. $18.00 d. $15.00b) The price elasticity of demand for urban transit fares has been estimated to liebetween -0.1 and -0.6. Based on these results, what is the economic argument for raisingtransit fares? What political arguments might local governments and transit authoritiesencounter in opposition to these economic arguments?Why have gasoline prices risen faster over the past year, especially in Canada, and what is a policy government could use to lower gasoline prices? use know about supply, and demand curve, and also elasticity to explain in your words. 500 words, please.
- A project requires signing buying 500 cubic yards of concrete per week for the next year from the only local provider. The currently price is $100 per yard and the provider sells 5,000 yards per week. Assuming marginal cost is constant, elasticity of demand at the current price is -1.5, and using a linear demand approximation, estimate the opportunity cost of the weekly government purchase. The METB is 0.2. Note you will need to find the original demand, the new demand, the new price, and the new quantity purchased by those other than the government in the process.Solve only when know correct solution.wrong solution downvote. Q)Market demand for taxi-rides (x) per day in Smallville is p = 20 − 0.1x. Market supply is perfectly elastic at $10 per ride. There is currently a 10% tax on taxi rides, but the town decides to raise the tax slightly to 11%. Find the marginal excess burden from this policy change, as well as the average excess burden per dollar of revenue, before and after the change.Studies have fixed the short-run price elasticity of demand for HPV vaccines at -0.25 . Suppose that transportation issues lead to a sudden cutoff of vaccine supplies. As a result, supplies of HPV vaccines drop 20 percent. a. If HPV vaccines were selling for 130 dollar per dose before the cutoff, how much of a price increase would you expect to see in the coming months? b. Suppose that the government imposes a price ceiling on HPV vaccines at 130 dollar per dose. How would the relationship between vaccine recipients and hospital/clinic owners change?
- Suppose an economist estimates that the price elasticity of supply for red wine is2.4 while its price elasticity of demand is -4.0.If the government decides to impost a per-unit sales tax of $40 per bottle of redwine, how would the market price for red wine be affected? Show yourcalculation.Consider public policy aimed at alcohol consumption. a) Studies indicate that the price elasticity of demand for alcohol is about 0.5. If a bottle of rum currently cost $22 and the Government wants to reduce alcohol consumption by 25 percent, by how much should it increase the price? b) What will be the impact of an increase in price on the revenues of the alcohol manufacturer? c) If the Government permanently increases the price of alcohol, will the policy have a larger effect on the consumption of alcohol one year from now or five years from now? d) Studies also find that teenagers have higher price elasticity than do adults. Why might this be true?img' (a If po increases, what happens to the demand and supply of public transportation (shifts left/shifts right/doesn’t change) What happens to the equilibrium quantity and price for public transportation? (increase/decrease) (b)At a given price p, as oil becomes more expensive (po increases), does the (own) price elasticity of demand for public transportation increase / decrease / stay the same? (c) Calculate the cross-price elasticity of public transportation demand with respect to the oil price po, at the point p = 1 and po = 2. Are the two goods (public transportation and oil) substitutes or complements, or unrelated?
- The subway fare in your town has just been increased from a current level of 50 cents to $1.00 per ride. As a result, the transit authority notes a decline in ridership of 30 percent.Compute the price elasticity of demand for subway rides.a. If the transit authority reduces the fare back to 50 cents, what impact would you expect on the ridership? Why?Suppose the market for rum can be described by the following equations: Demand: P= 10- Q, Supply: P= Q - 4, where P is the price in US dollars per unit and Q is the quantity in thousands of units. Then: 2) suppose the government imposes a tax of $1 per unit to reduce rum consumption and raise government revenues. a) what will be the new equilibrium quantity be? b) what price will the buyer pay? c) what amount per unit will the seller recieve?12. In the nation of Transporta, the income elasticity of demand for used cars is -2.66. So when incomes in this nation increase by 10 percent A. the quantity of used cars demanded will decrease by 26.6 percent. B. used cars will be normal goods. C. the quantity of used cars demanded will increase by 26.6 percent. D. the demand curve for used cars will shift rightward. 14. Which of the following represents a price elastic supply? A. The quantity supplied increases by 21 percent as a result of an increase in the price of 12 percent. B. The quantity demanded increases 18 percent as a result of a decrease in the price of 8 percent. C. The price rises by 22 percent causing the quantity supplied to increase by 3 percent. D. The price rises by 8 percent causing the quantity demanded to fall by 10 percent.