Suppose the government levies a tax of $0.50 per pack on the buyers of cigarettes. suppose also that the price elasticity of demand for cigarettes is 1.2 and the price elasticity of supply is 0.7. after this tax is levied, total surplus will , and the price received by producers (not including the tax) will ,a. increase increase by exactly $0.50b. decrease fall by exactly $0.50c. increase fall by less than $0.50d. decrease fall by less than $0.50e. increase increase by more than $0.50

Read the following scenario and answer the question in 5-10 sentences. you are the owner of a small business that is a defendant in a lawsuit in federal court. you received bad news from your lawyer that the judge did not allow certain documents to be admitted as evidence in court and that the jury reached a $50,000 verdict in favor of the plaintiff. your lawyer tells you that it is within your legal right to hire him to file an appeal with the united states court of appeals. if the appellate court rules in your favor, you may be able to avoid paying part or all of the $50,000. evaluate your lawyer’s suggestion about appealing the decision.

Aprimary advantage of organizing economic activity within firms is thea. ability to coordinate highly complex tasks to allow for specialized division of labor. b. low administrative costs because of reduced bureaucracy. c. eradication of the principal-agent problem. d. high-powered incentive to work as salaried employees for an existing firm.

Which of the following is one of the five fundamental questions? which products will be in scarce supply and which in excess supply? who should appoint the head of the central bank? how much should society save? correct what goods and services will be produced?