de Oil Prices .o x S middle east od, Google Price of oil. Wikipedia Short Answer
ID: 1163078 • Letter: D
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de Oil Prices .o x S middle east od, Google Price of oil. Wikipedia Short Answer Economic ? (4 unread) x w x structure.com/courses/18320/quizzes/76752/take D | Question 5 1 pts The demand for Carlo Rossi wine is relatively elastic since there are many other wines available to choose from. If the government decides to tax just this specific brand of wine, which of the following do you think will occur? (specifically, assume the supply curve is steeper than the demand curve) The majority of the tax will be borne by the producer O All of the tax will be passed on to the consumer All of the tax will be borne by the producer The majority of the tax will be borne by the consumer | Question 6 1 pts Cigarettes are generally considered a very inelastic good. Assume cigarette companies decrease the price of their product, what can you expect in terms of total revenue? Total revenue will decrease as a result of the decreased price Total reverue will increase as a result of the decreased price Total revenue will remain unchanged as a result of the decreased price (MG 0926P e janes pic.html e (4 unread ericb htm at 9Explanation / Answer
Amswer 5:
Option A. Since the demand curve is relatively elastic and supply curve is steeper and thus supply curve will be relatively inelastic as compared to demand curve and this will lead to majority of the tx burden being borne by the side of the market which relatively inelastic or producer side of the market.
Answer 6;
Option A. When the demand of the product is relatively inelastic, the increase in price increases total revenue of the firm and decrease in price decreases total revenue of the firm.
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