Yachts are produced by a perfectly competitive industry in Dystopia. Industry output (Q) is currently 30,000 yachts per year. The government, in an attempt to raise revenue, places a $20,000 tax on each yacht. Demand is highly, but not perfectly, elastic. The result of the tax in the long run will be that1. Q falls from 30,000; P rises by less than $20,000.2. Q falls from 30,000; P rises by $20,000.3. Q falls from 30,000; P does not change.4. Q stays at 30,000; P rises by $20,000.

2. Q falls from 30000, P rises by $20,000.

Explanation:

When the Government imposes a tax of $20 000 fine on each yacht produced, the Tax imposed increases price per yacht which will then course a huge fall in the demand because the demand is highly elastic.

The Price movement is same in the long run and short run, in the Long run Price will rise by $20 000. Quantity will fall from Q 30000

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