9) If a product's income elasticity of demand is -1.7, then we can conclude that
A) an increase in income will lead to an increase in demand for the product.
B) the product is certainly a necessity.
C) the product is a luxury good.
D) a decrease in income will lead to an increase in demand for the product.
E) the product is a normal good.

10) Normal goods

Figure 1: The initial market equilibrium is P = $2.00 and Q = 1000. Suppose the government imposes a tax of
$0.60 per soft drink purchased.
11) Refer to Figure 1. After the tax is imposed, the price paid by the consumer becomes

12) Refer to Figure 1. The after-tax price received by the seller becomes

13) Refer to Figure 1. After the tax is imposes, the change in total expenditure on soft drinks is
A) a decrease of $80.
B) a decrease of $160.
C) an increase of $320.
D) an increase of $480.
E) No change in total expenditure.

##### We have textbook solutions for you!

**The document you are viewing contains questions related to this textbook.**

**The document you are viewing contains questions related to this textbook.**

Expert Verified

14) The imposition of an excise tax will cause the least burden on consumers when demand is

15) A value of zero for the elasticity of supply of some product implies that

16) If pizza and beer are complementary goods, we can conclude that

17) Suppose the cross-price elasticity of demand between raspberry jam and strawberry jam is 7.5. The
interpretation of this result is that
A) a 10% increase in the price of strawberry jam leads to a 7.5% increase in quantity demanded of
raspberry jam.
B) a 10% increase in the price of strawberry jam leads to a 0.75% increase in quantity demanded of
raspberry jam.
C) a 10% increase in the price of strawberry jam leads to a 75% increase in quantity demanded of
raspberry jam.
D) a 10% increase in the price of strawberry jam leads to a 7.5% decrease in quantity demanded of
raspberry jam.
E) a 10% increase in the price of strawberry jam leads to a 75% decrease in quantity demanded of
raspberry jam.