Suppose the government wants to raise tax revenue.  The price elasticity of demand for electricity is 0.4. You advise the government to Group of answer choicesraise the price of electricity. lower the price of electricity.Maintain the price of electricity. Do nothing.

If a change in the price of a good results in no change in total revenue:Group of answer choicesthe demand for the good must be elasticthe demand for the good must be inelasticthe demand for the good must be unit elasticbuyers must not respond at all to changes in price

For resources to be managed optimally, policymakers must ______.Multiple choice question.identify the correct rate of inflationcalculate the correct discount rateidentify the correct risk levelcreate the appropriate incentive structure

Which of the following could be the price elasticity of demand for a good for which an increase in price would decrease total revenue?Group of answer choices0.80.011.5

Government-granted monopolies are likely to have prices determined byMultiple Choicegovernment regulation.law of supply.law of demand.interaction of supply and demand.

Fill in the Blank QuestionFill in the blank question.If the objective of government is to achieve efficiency, it should establish a legal price for the monopolist that is equal to its marginal cost.