If the price elasticity of demand for a good is 3.0, it is clear that the good
a. would be a poor choice to tax if the object is to raise tax revenue
b. would be an excellent choice to tax if the object is to raise revenue
c. is an essential good
d. has a demand curve that is price inelastic at every price level
e. is a complementary good
A
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At McDonald's, economies of scale at the plant (or restaurant) level occur
a. over the range of output for which that restaurant's average cost curve is upward sloping b. over the range of output for which that restaurant's average cost curve is horizontal c. over the range of output for which that restaurant's average cost curve is downward sloping d. at all levels of output e. only in the short run
Estimations of demand are used as input in this type of scenario:
A. understanding automobile demand to decide whether to offer below-market-rate loans for new cars. B. as input into a firm's decision-making process. C. understanding the demand for oil in order to impose a new oil import tax. D. all of the above
Greta’s company has developed a new technology that will make the production of most major military systems considerably more efficient. Which point on the production possibilities curve represents the result of this development?
a. A
b. B
c. C
d. D
Which of the following is not an example of an incomes policy?
A. presidential jawboning B. unemployment insurance C. wage and price guidelines D. wage and price controls