Please do not copy the answers & must be give me all answers.

1.Ernie owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water: Cost of first bottle $1 Cost of second bottle $3 Cost of third bottle $5 Cost of fourth bottle $7.

2.After economics class one day, your friend suggests that taxing food would be a good way to raise revenue because the demand for food is quite inelastic. In what sense is taxing food a good way to raise revenue? In what sense is it not a good way to raise revenue?

3.Daniel Patrick Moynihan, the late senator from New York, once introduced a bill that would levy a 10,000 percent tax on certain hollow-tipped bullets. a. Do you expect that this tax would raise much revenue? Why or why not? b. Even if the tax would raise no revenue, why might Senator Moynihan have proposed it?

4.Suppose that Congress imposes a tariff on imported automobiles to protect the U.S. auto industry from foreign competition. Assuming that the United States is a price taker in the world auto market, show the following on a diagram: the change in the quantity of imports, the loss to U.S. consumers, the gain to U.S. manufacturers, government revenue, and the deadweight loss associated with the tariff. The loss to consumers can be decomposed into three pieces: a gain to domestic producers, revenue for the government, and a deadweight loss. Use your diagram to identify these three pieces

5.Consider a country that imports a good from abroad. For each of following statements, state whether it is true or false. Explain your answer. a. The greater the elasticity of demand, the greater the gains from trade. b. If demand is perfectly inelastic, there are no gains from trade. c. If demand is perfectly inelastic, consumers do not benefit from trade.