|
Title: A few years ago, the city of Seattle, Washington, considered imposing a specific tax on all ... Post by: corie on Oct 25, 2017 A few years ago, the city of Seattle, Washington, considered imposing a specific tax on all espresso-based coffee drinks sold in the city. The extra tax revenue generated would have been used to fund after-school programs for low-income children. The coffee-house owners (firms) agreed that this would be a good program to fund, but they argued that the tax would sharply reduce their sales volume and they would pay most of the tax burden. This claim is true if:
A) the demand for espresso-based coffee is more inelastic than supply. B) the demand for espresso-based coffee is more elastic than supply. C) there are no close substitutes for espresso-based coffee drinks. D) espresso-based coffee drinks can be produced at constant marginal cost. Title: Re: A few years ago, the city of Seattle, Washington, considered imposing a specific tax on all ... Post by: boransal on Oct 25, 2017 Content hidden
|