A. Why do governments raise taxes on cigarettes and alcohol to raise government revenues?
B- What changes do you make to your demand for gasoline when the prices start to climb up?
C- Would you want to own a business that sells price-elastic products or price-inelastic products? Why?
D. Let us say the price of widgets is $1.00. At this price, consumers demand 10 widgets. Now the widget seller increases the price to $1.50. At this new higher price, quantity demanded falls to 9 widgets. Are widgets elastic or inelastic? Please show your work.