If marijuana were legalized, it is likely that there would be an increase in the supply of marijuana. Advocates of marijuana legalization argue that this would significantly reduce the amount of revenue going to the criminal organizations that currently supply marijuana. These advocates believe that the a. demand for marijuana is elastic. b. supply for marijuana is elastic. c. supply for marijuana is inelastic. d. demand for marijuana is inelastic. QUESTION 8 It is estimated that the price elasticity of demand for twinkies is -1.20, if twinkie production is reduced by 10% then price will rise by? а. 15% b. 4.3% С. 12% d. 8.3% O0 00

If marijuana were legalized, it is likely that there would be an increase in the supply of marijuana. Advocates of marijuana legalization argue that this would significantly reduce the amount of revenue going to the criminal organizations that currently supply marijuana. These advocates believe that the a. demand for marijuana is elastic. b. supply for marijuana is elastic. c. supply for marijuana is inelastic. d. demand for marijuana is inelastic. QUESTION 8 It is estimated that the price elasticity of demand for twinkies is -1.20, if twinkie production is reduced by 10% then price will rise by? а. 15% b. 4.3% С. 12% d. 8.3% O0 00

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 4.9P: (Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of...

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