Question 38 4 pts Question 37 4 pts Recall the PES of housing in California\'s l

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Question 38 4 pts Question 37 4 pts Recall the PES of housing in California's less regulated cities which is 0.36. What can be inferred from this number? Suppose we have a country known as "Gilbert-ville". It is a command economy where the quantity supplied of beef does not depend on the price as the quantity supplied is determined by the government. An increase in tastes and preferences will cause a greater change in the price than the quantity If there are frequent changes in tastes and preferences for this good, how would we be able to characterize the price? PES is elastic It will not change much It will not change at all It will change a lot increase in price causes an increase in total revenue The quantity demanded will fall a lot if the price increases by a lot It will change only once a year Question 39 4 pts Question 40 4 pts Consider a country called "Jaylene-ville" that is NOT a command economy. In this country, there is a $0.70 tax per gallon. Then, this tax is raised to $1.00 per gallon. Consider the country from the previous problem called "Jaylene-ville" that is NOT a command economy. In this country, there is a $0.70 tax per gallon. Then, this tax is raised to $1.00 per gallon. What would likely happen to the sale of electric vehicles? What happens to the price buyers pay when the tax increases? Increases Increases Decreases Decreases Stays the same Stays the same Unclear Unclear

Explanation / Answer

Answer 37:

Option C. Since the demand of the good is relatively inelastic, thus an increase in the price of the good will lead to increase in total revenue earned from the sale of the good.

Answer 38:

Option A. Since the price is not market determined, there will not be much change in the price.

Answer 39:

Option A. Increase in taxes will increase the amount that buyers pay as demand is reltively inelastic.

Answer 40:

Option A. Since both are substitute goods, increase in the price of one will increase the quantity demanded of another good.

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