Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
expand_more
expand_more
format_list_bulleted
Question
Chapter 9R, Problem 10MCQ
To determine
The elasticity of cigarette demand if the government levied a tax of $0.50 on buying cigarettes where the
Expert Solution & Answer
Explanation of Solution
In this example, the demand for cigarette is elastic because increase in price of cigarettes leads to decrease in demand of cigarettes. Here, the value of elasticity of demand is greater than one which is more than the elasticity of supply.
Therefore, the correct option is e.
Economics Concept Introduction
Introduction:
Elasticity of demand represents the measure of sensitivity of demand to price that shows how change in price or supply of goods affects the quantity demanded.
Chapter 9R Solutions
Krugman's Economics For The Ap® Course
Ch. 9R - Prob. 1MCQCh. 9R - Prob. 2MCQCh. 9R - Prob. 3MCQCh. 9R - Prob. 4MCQCh. 9R - Prob. 5MCQCh. 9R - Prob. 6MCQCh. 9R - Prob. 7MCQCh. 9R - Prob. 8MCQCh. 9R - Prob. 9MCQCh. 9R - Prob. 10MCQ
Ch. 9R - Prob. 11MCQCh. 9R - Prob. 12MCQCh. 9R - Prob. 13MCQCh. 9R - Prob. 14MCQCh. 9R - Prob. 15MCQCh. 9R - Prob. 16MCQCh. 9R - Prob. 17MCQCh. 9R - Prob. 18MCQCh. 9R - Prob. 19MCQCh. 9R - Prob. 20MCQCh. 9R - Prob. 21MCQCh. 9R - Prob. 22MCQCh. 9R - Prob. 23MCQCh. 9R - Prob. 24MCQCh. 9R - Prob. 25MCQCh. 9R - Prob. 1FRQCh. 9R - Prob. 2FRQCh. 9R - Prob. 3FRQCh. 9R - Prob. 1CTQCh. 9R - Prob. 2CTQCh. 9R - Prob. 3CTQCh. 9R - Prob. 4CTQ
Knowledge Booster
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education