7
answers
0
watching
253
views
6 Oct 2018
11. [3 Marks) Assume all markets are perfectly competitive with downward sloping demand and upward sloping supply. Cross-price elasticity of cocktails sold in bars with respect to the price of "ready-to-drink" cocktails sold in supermarkets (RTDs) has been estimated at -0.18. If the government increases the tax on RTDs, what is the effect on the equilibrium price and quantity in the market for cocktails sold in bars? A. | P; 1 Q B. † P; Q C. P; 1 Q D. P;IQ E. I know I will get 0 marks for choosing E, but I choose it anyway.
11. [3 Marks) Assume all markets are perfectly competitive with downward sloping demand and upward sloping supply. Cross-price elasticity of cocktails sold in bars with respect to the price of "ready-to-drink" cocktails sold in supermarkets (RTDs) has been estimated at -0.18. If the government increases the tax on RTDs, what is the effect on the equilibrium price and quantity in the market for cocktails sold in bars? A. | P; 1 Q B. † P; Q C. P; 1 Q D. P;IQ E. I know I will get 0 marks for choosing E, but I choose it anyway.
7
answers
0
watching
253
views
For unlimited access to Homework Help, a Homework+ subscription is required.
akunuru639Lv10
28 May 2023
larryrambo777Lv10
19 Mar 2023
Already have an account? Log in
Lelia LubowitzLv2
7 Oct 2018
Already have an account? Log in