Week 3 Homework Solutions - Week 3 Homework Solutions...

This preview shows page 1 - 2 out of 2 pages.

Week 3 Homework SolutionsChapter 4Question 4What effect would a rule stating that university students must live in university dormitories have on the price elasticity of demand for dormitory space? What impact might this in turn have on room rates?
Question 7You are chairperson of a state tax commission responsible for establishing a program to raise new revenue through excise taxes. Why would elasticity of demand be important to you in determining the products on which the taxes should be levied?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture