The governmenta#39;s revenue is the area of the shaded rectangle, which is (pa#39;- paquot;) x = $0.20 x q\ Answers to Challenge Problems 1. ... From the formula for elasticity, we know that %AQd = -1.5 x %AP, provided income and the prices of other goods do not change. ... 1 x %AP. Setting them equal to each other gives - 5 percent - 0.5 x %AP = %AP, or %AP = - 3.33 percent. From the supply elasticity. 76 Chapter 5.
|Title||:||Study guide to accompany Principles of microeconomics|
|Author||:||Jeffrey Parker, Roy Ruffin|