Wheat farmers in Kansas would benefit from a devastating crop failure in N.Dakota if the U.S.demand for wheat?

Question

is...
a. inelastic
b. elastic
c. unit elastic
d. downward sloping
e. perfectly elastic

Answer 1

The price elasticity of demand for cigarettes is estimated to be (-.4) and the income elasticity is about (+5).
a- Suppose the government impose a tax on cigarettes so the price rises by 10%. Estimate the effect this price increase will have on cigarettes consumption and consumer spending on cigarettes. (both in percentage terms)

Answer 2

Suppose hospital (A) has 500patients/day and average cost of operation is $1500/day. Hospital (B) has 300 patients/day and average cost of $600/day. Hospital (C) has 100 patients/day and average cost of $600/day. What can you say about the most efficient size of hospital? Explain the reasons for this choice of hospital size. Illustrate your answer with a graph.