Homework Answers
Solution: It will increase by 50%
Working:
Price elasticity of demand = [% change in consumption / % change in price]
- 1 = % change in consumption / 50%
It gives 50% change in consumption
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Assume that, if recreational Marijuana become legal, its price would be cut in half. Given the...
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new...
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new source of revenue for the government. July 1, 2015, the state government raised excise taxes paid by marijuana retailers on final sales leading to the following effects on prices and quantity sold: Date Quantity Sold (average grams per day) Price (per gram) June 2015 (pre tax change) 310.0 13.18 July 2015 307.0 13.48 August 2015 303.1 13.48 The above example is adapted from a...
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new...
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new source of revenue for the government. July 1, 2015, the state government raised excise taxes paid by marijuana retailers on final sales leading to the following effects on prices and quantity sold: Date Quantity Sold (average grams per day) Price (per gram) June 2015 (pre tax change) 310.0 13.18 July 2015 307.0 13.48 August 2015 303.1 13.48 The above example is adapted from a...
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new...
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new source of revenue for the government. July 1, 2015, the state government raised excise taxes paid by marijuana retailers on final sales leading to the following effects on prices and quantity sold: Date Quantity Sold (average grams per day) Price (per gram) June 2015 (pre tax change) 310.0 13.18 July 2015 307.0 13.48 August 2015 303.1 13.48 The above example is adapted from a...
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new...
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new source of revenue for the government. July 1,2015, the state government raised excise taxes paid by marijuana retailers on final sales leading to the following effects on prices and quantity sold: Quantity Sold (average grams per day) Price (per Date gram) 13.18 13.48 13.48 June 2015 (e 310.0 tax change) July 2015 August 2015 303.1 The above example is adapted from a recent study...
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new...
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new source of revenue for the government. July 1, 2015, the state government raised excise taxes paid by marijuana retailers on final sales leading to the following effects on prices and quantity sold: Date Quantity Sold (average grams per day) Price (per gram) June 2015 (pre tax change) 310.0 13.18 July 2015 307.0 13.48 August 2015 303.1 13.48 The above example is adapted from a...
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new...
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new source of revenue for the government. July 1, 2015, the state government raised excise taxes paid by marijuana retailers on final sales leading to the following effects on prices and quantity sold: Date Quantity Sold (average grams per day) Price (per gram) June 2015 (pre tax change) 310.0 13.18 July 2015 307.0 13.48 August 2015 303.1 13.48 The above example is adapted from a...
How are the elasticities in the below questions different? Beyond the math, why? Recreational marijuana was...
How
are the elasticities in the below questions different? Beyond the
math, why?
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new source of revenue for the government. July 1,2015, the state government raised excise taxes paid by marijuana retailers on final sales leading to the following effects on prices and quantity sold: Quantity Sold (average grams per day) Price (per Date gram) 13.18 13.48 13.48 June 2015 (e 310.0 tax change) July...
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new...
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new source of revenue for the government. July 1, 2015, the state government raised excise taxes paid by marijuana retailers on final sales leading to the following effects on prices and quantity sold: Date Quantity Sold (average grams per day) Price (per gram) June 2015 (pre tax change) 310.0 13.18 July 2015 307.0 13.48 August 2015 303.1 13.48 The above example is adapted from a...
Colorado legalized the recreational use of marijuana in 2014 to raise revenues through sales and excise...
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Suppose that legalizing the use of marijuana would decrease its price by 86 percent. If the...
Suppose that legalizing the use of marijuana would decrease its price by 86 percent. If the price elasticity of demand for marijuana is -2.50, what would be the percentage increase in the quantity of marijuana demanded from legalizing marijuana?percent. (Enter a numeric response using a real number rounded to two decimal places.) Suppose instead that the price elasticity of demand for marijuana is-0.36. What would be the percentage increase in the quantity of marijuana demanded from legalizing marijuana?percent (enter your...
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new source of revenue for the government. July 1,2015, the state government raised excise taxes paid by marijuana retailers on final sales leading to the following effects on prices and quantity sold: Quantity Sold (average grams per day) Price (per Date gram) 13.18 13.48 13.48 June 2015 (e 310.0 tax change) July 2015 August 2015 303.1 The above example is adapted from a recent study...
How
are the elasticities in the below questions different? Beyond the
math, why?
Recreational marijuana was legalized in the state of Washington in July of 2014 creating a new source of revenue for the government. July 1,2015, the state government raised excise taxes paid by marijuana retailers on final sales leading to the following effects on prices and quantity sold: Quantity Sold (average grams per day) Price (per Date gram) 13.18 13.48 13.48 June 2015 (e 310.0 tax change) July...
Suppose that legalizing the use of marijuana would decrease its price by 86 percent. If the price elasticity of demand for marijuana is -2.50, what would be the percentage increase in the quantity of marijuana demanded from legalizing marijuana?percent. (Enter a numeric response using a real number rounded to two decimal places.) Suppose instead that the price elasticity of demand for marijuana is-0.36. What would be the percentage increase in the quantity of marijuana demanded from legalizing marijuana?percent (enter your...
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