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How does the relationship between marginal revenue and price-(Answered)

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How does the relationship between marginal revenue and price elasticity explain the following economic observations? a. There are five major toll routes for automobiles from New Jersey into New York City. Raising the toll on one of them will cause total revenue collected on that route to fall. Raising the tolls on all of the routes will cause total revenue collected on any one route to rise. b. A doubling of the restaurant tax from 3 percent to 6 percent only in Hanover, New Hampshire, causes meal tax revenues to fall in that town, but a statewide increase of a similar amount causes tax revenues to rise

 

Paper#9256024 | Written in 27-Jul-2016

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