A study found that in California, where car vanity license plates cost $28.75, the elasticity of demand was 0.52. In Massachusetts, where vanity plates cost $50, the elasticity of demand was 3.52. a. Assuming vanity plates have zero production cost, was each state collecting the maximum revenue it could from vanity plates? Explain your reasoning. b. What recommendation would you have for each state to maximize revenue? c. Which state was most likely to be following a political unsupportable policy?
Recently Asked Questions
- he products of cellular respiration are ___________________.
- I need help with the following questions: Describe your experience with branching and merging in your development process, being sure to discuss conflicts,
- Hey I need some help. I'm referencing a page on course hero and my homework is tweaked a little. I'm looking at this question