According to an article in the New York Times, when the French government imposed a new tax

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According to an article in the New York Times, when the French government imposed a new tax on sales of beer, it estimated that the retail price of beer would rise by the equivalent of 6 cents per half pint. A spokesman for the beer industry argued that the actual increase in price would be 25 cents per half pint. Discuss the differences between the French government’s and the beer industry’s estimates of the price elasticity of demand for beer.  

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Economics

ISBN: 978-0134738321

7th edition

Authors: R. Glenn Hubbard, Anthony Patrick O Brien

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