7 -- Part 3: Taxation and Government Intervention
What is the price elasticity of 51 percent if the quantity changes by 28 percent and the price goes up?
Which producers do you think have different elasticities?
Do you think a shift in supply will have an effect?
What is the meaning of the elasticity measures?
There are three statements about elasticities inelasticity in the box "geometric tricks for estimating price that supply curves intersecting the quantity axis are elasticity." Can you prove it by using straight-line supply curves?
Coffee comes in 11-ounce cans, why don't colleges raise tuition by that amount?
Why wouldn't an economist argue that supply-side approaches to reduce the drug would help drug producers?
Explain your answer, what does this suggest?