EBK SURVEY OF ECONOMICS
EBK SURVEY OF ECONOMICS
10th Edition
ISBN: 9781337672207
Author: Tucker
Publisher: CENGAGE CO
bartleby

Videos

Question
Book Icon
Chapter 5, Problem 5SQ
To determine

 The change in elasticity in a long run.

Blurred answer
Students have asked these similar questions
Choose a good or service you are familiar with.  It should be something that is currently available for purchase.  If your classmates would be unfamiliar with this good or service, provide a brief description.   Initial Response: Complete all items below: 1) Choose the most likely demand shifter (the things that shift demand) for your product and explain why and how the demand curve is most likely to shift if there is a change in that demand shifter.  If the demand curve shifts in the way you are suggesting, what will happen to equilibrium price and quantity? 2) Choose the most likely supply shifter (the things that shift supply) for your product and explain why and how the supply curve is most likely to shift if there is a change in that supply shifter.  If the supply curve shifts in the way you are suggesting what will happen to equilibrium price and quantity? 3) If both the supply and demand curves shift in the way you suggested in #1 & #2 above, what will happen to equilibrium…
For a particular good, 10% increase in price causes a 5% decrease in quantity demanded. Which of the following statements is most likely applicable to this good? a. The good is a luxury b. The market for the good is broadly defined c. there are many close substitutes for this good d. The relevant time horizon is long
A government is considering placing a tax on alcohol consumption (demand-side) with the goal of raising revenue in order to finance health care benefits such as Medicare. People who support the tax argue that the demand for alcohol is price inelastic in the short-run. Which of the following statements is true? a.This is a very good way to raise revenue both in the short term and in the long term because there are no substitutes for alcohol. b.No tax revenue can be raised in this way because alcohol sellers will just lower their price by the amount of the tax, and therefore the consumer price of alcohol will not change. c.This tax will not raise much revenue either in the short term or the long term because demand is price inelastic. d.The alcohol tax will raise a lot of revenue in the short-run, but it may not raise as much revenue in the long-run since people will substitute away from alcohol, making the long-run demand for alcohol more elastic.
Knowledge Booster
Background pattern image
Economics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Economics For Today
Economics
ISBN:9781337613040
Author:Tucker
Publisher:Cengage Learning
Text book image
Survey Of Economics
Economics
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
How To Understand Elasticity (Economics); Author: Market Power;https://www.youtube.com/watch?v=1XXhpHJTglg;License: Standard Youtube License