Suppose that at the dvd market price of $15, the price elasticity of dvd demand is 2.5 and the price elasticity of dvd supply is 0.8 (i. e., ed = 2.5 and es = 0.8 at pmkt = $15). if the government imposes a $4 per dvd excise tax on the production of dvds, then the consumers price will and the producers price will hint: illustrate the tax in a demand and supply graph.

a. increase by less than $2, decrease by more than $2 but less than $4.
b. decrease by less than $2, decrease by more than $2 but less than $4.
c. increase by more than $2 but less than $4, decrease by less than $2.
d. decrease by more than $2 but less than $4, increase by less than $2.
e. increase by more than $4, decrease by more than $4.
f. increase by less $2, decrease by less than $2.
g. not change, decrease by exactly $4.
h. increase by exactly $4, not change.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; purpose nondisclosure;