Question

5. If demand is elastic, will shifts in supply have a larger effect on equilibrium quantity or 6. If supply is inelastic, will shifts in demand have a larger effect on equilibrium price or on Under which circumstances does the tax burden fall entirely on consumers? İpts on price? Ipts quantity? 1pts 8. What is the relationship between price elasticity and position on the demand curve? For example, as you move up the demand curve to higher prices and lower quantities, what happens to the measured elasticity? How would you explain that? 2pts Economists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose income elasticity is less than one and those whose income elasticity is greater than one. What are some products that would fall into each category, and why? 3pts 9. 10 Suppose you could buy shoes one at a time, rather than in pairs. What do you predict the cross-price elasticity for left shoes and right shoes would be? 1pts . The equation for a demand curve is P 48-3Q. 4pts What is the elasticity in moving from a quantity of 5 to a quantity of 6? Is it elastic, inelastic, or unitary elastic? a. b. What is the elasticity in moving from price $12 to $157 Is it elastic, inlastic, or unitary elastic? The supply of paintings by Leonardo Da Vinci. who painted the Mona Lisa and The Last Supper and died in 1519, is highly inelastic. Sketch paying attention to the appropriate elasticities Does Supply or Demand determine the a supply and demand diagram, price, and why? 2pts 13. Assume that the supply of low-skilled workers is fairly elastic, but the employers demand for such workers is fairly inelastic. 4pts a. If the policy goal is to expand employment for low-skilled workers, is it better to focus on policy tools to shift the supply of unskilled labor or on tools to shift the demand for unskilled labor? Explain using a supply and demand diagram. What if the policy goal is to raise wages for this group? Explain using a supply and demand diagrams. b. of 2 705 words

Answer 1

The Larger Effect or Equilibrium Quantity. Larger effect on Equilibrium price. If the demand curve is perfect Inelastic then the full tax burden on consumer.