World famous Burpee Beer is brewed in the small town of West Burpee. Currently, the town of West Burpee levies a $2 per-case tax on all Burpee Beer, and the brewery sells 20,000 cases a year at a total
- a. How many total cases of beer would need to be produced to increase tax revenue by exactly $20,000?
- b. What is the
price elasticity of demand for Burpee Beer if the tax revenue increases by exactly $20,000? - c. How much total revenue will Burpee Beer receive if the tax revenue increases by exactly $20,000?
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