Use the Table Below to Answer the Following Questions

question 5

Multiple Choice

Use the table below to answer the following questions.
Table 6.3.2

-Refer to Table 6.3.2.You are in the business of producing and selling hamburgers,French fries,pizza,and ice cream.The mayor of your city plans to impose a sales tax on one of these products.Based on the elasticities in the table,on which of these goods would your customers prefer to be taxed?

• A)hamburgers
• B)French fries
• C)pizza
• D)ice cream
• E)Your customers are indifferent about which good is taxed.

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Definitions:

Operating Profit

The profit earned from a firm's core business operations, excluding deductions of interest and tax, also known as operating income or operational profit.

Unit-Priced Sales

Sales transactions where the price is based on a standard unit of measure, such as per item, per pound, or per liter.

Selling Music

The process of exchanging musical compositions or recordings for money or equivalent value.

Cost of Goods Sold

The explicit costs related to manufacturing goods that a company sells, including both materials and labor.