--%>

Effect on tax burdens by price elasticity of demand raise

When the price elasticity of demand for wine as 2.5, in that case rise in the excise tax which raises its price will be: (w) increase total spending upon wine. (x) reduce total spending upon wine. (y) not influence wine consumption. (z) not influence spending on wine.

I need a good answer on the topic of Economics problems. Please give me your suggestion for the same by using above options.

   Related Questions in Microeconomics

  • Q : Resources to escape state of destitution

    When an individual or family lacks adequate resources to escape a state of destitution, their circumstances are described as: (1) involuntary poverty. (2) relative poverty. (3) a vicious cycle of poverty (4) institutional poverty. (5) a culture of pov

  • Q : Problem on losing financial investments

     Can someone please help me in finding out the precise answer from the following question. Owners generally can’t lose more than their financial investments when a firm is a: (i) Proprietorship. (ii) Family business. (iii) Partnership. (iv) Corporation.

  • Q : Prohibition in Economic Profit Economic

    Economic profits are not: (1) a surplus of revenues over opportunity costs. (2) quite similar to pure economic rents from society’s viewpoint. (3) zero in a purely competitive economy along with no uncertainty and zero transaction costs. (4) dif

  • Q : Increases profit of a firm when output

    A firm would raise profits when it: (w) decreased output when MR > MC. (x) expanded output while MR > MC. (y) increased output when MC > MR. (z) shut down since MR = MC. Hello guys I want your advice. Plea

  • Q : State government budget Government

    Government budget: Government budget demonstrates the estimated receipts and estimated expenses of the government for 1-year.

  • Q : Problem on Equilibrium price What

    What happens to equilibrium price if increase in demand is equivalent to increase in supply? Answer: In case of equivalent increase in demand and supply the equilib

  • Q : Problem regarding to First Mover

    Carlos and Ivana both are roommates and friends. Carlos and Ivana eat together regardless of who cooks. When this game is repeated almost daily, and on Thursday, Ivana is permitted to pick first, the probable result is that: (w) neither Carlos nor Ivana cook, nor do t

  • Q : Problem on Substitute Goods declining

    The market demand curve for the potatoes would shift to the left in reaction to: (1) New research pointing that eating French fries helps prevent cancer. (2) Potato lovers becoming alarmed regarding the rumored potato shortage. (3) Genetic engineering methods that mak

  • Q : Short-run supply curve of a competitive

    At any point on short-run supply curve of a competitive industry, every firm produces at the similar: (w) rate of technological equilibrium. (x) average cost. (y) marginal cost. (z) positive level of economic profit.

    Q : Monopsonistic-Wage Discrimination

    Whenever an organization’s wage structure reflects the keenness of individual staff to work, terms which are most applicable comprise: (p) Monopsonistic exploitation & wage discrimination. (q) Monopolistic exploitation and the separation of possession and co