You are in the business of producing and selling hamburgers, french fries, pizza, and ice cream. The mayor plans to impose a tax on one of these products
Based on the elasticities in the above table, as a profit-minded business person who seeks to avoid taxes whenever possible, which good would you least like to have taxed? A) hamburgers
B) pizza
C) French fries
D) ice cream
A
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If a 10 percent rise in price leads to a reduction in quantity demanded of more than 10 percent,
A. demand is elastic. B. demand is inelastic. C. elasticity of demand is unitary. D. None of the above is correct.
Economic efficiency and income equality are often conflicting goals in an economy.
Answer the following statement true (T) or false (F)
The three fundamental economic questions are what, how, and why.
a. true b. false
Which assumption is part of the model of monopolistic competition?
A. There is no collusion among firms. B. There are few buyers and sellers. C. There are significant barriers to entry into the market. D. Firms make identical products.