"Question 1" (True or False)Answer the following questions and state your brief explanation.i.If two goods are complementary, it means that when the price of one good increases, the demandfor the other rises (TRUE/FALSE) Explain!ii.If the price of gasoline rises by 10 percent and new car sales fall by 5 percent, this indicates thatthese two goods are complementary (TRUE/FALSE) Explain!ii.The price elasticity number for necessities will be greater than 1. (TRUE/FALSE) Explain!iv.Demand is elastic if the consumer has only a few substitutes to choose from. (TRUE/FALSE) Explain!Short-run choices imply that at least one factor of production is fixed. (TRUE/FALSE) Explain!V.vi.The productivity of any input is independent and is not affected by the other resources that areused. (TRUE/FALSE) Explain!vii.When a firm is able to achieve the output indicated by a production function, it is producing withtechnical efficiency. (TRUE/FALSE) Explain!viii.The law of diminishing returns indicates that the marginal physical product of a variable inputdeclines as more of it is employed, ceteris paribus. (TRUE/FALSE) Explain!

"Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

"Question 1" (True or False) Answer the following questions and state your brief explanation. i. If two goods are complementary, it means that when the price of one good increases, the demand for the other rises (TRUE/FALSE) Explain! ii. If the price of gasoline rises by 10 percent and new car sales fall by 5 percent, this indicates that these two goods are complementary (TRUE/FALSE) Explain! iii. The price elasticity number for necessities will be greater than 1. (TRUE/FALSE) Explain! iv. Demand is elastic if the consumer has only a few substitutes to choose from. (TRUE/FALSE) Explain! V. Short-run choices imply that at least one factor of production is fixed. (TRUE/FALSE) Explain! vi. The productivity of any input is independent and is not affected by the other resources that are used. (TRUE/FALSE) Explain! vii. When a firm is able to achieve the output indicated by a production function, it is producing with technical efficiency. (TRUE/FALSE) Explain! viii. The law of diminishing returns indicates that the marginal physical product of a variable input declines as more of it is employed, ceteris paribus. (TRUE/FALSE) Explain!

"Question 1" (True or False) Answer the following questions and state your brief explanation. i. If two goods are complementary, it means that when the price of one good increases, the demand for the other rises (TRUE/FALSE) Explain! ii. If the price of gasoline rises by 10 percent and new car sales fall by 5 percent, this indicates that these two goods are complementary (TRUE/FALSE) Explain! iii. The price elasticity number for necessities will be greater than 1. (TRUE/FALSE) Explain! iv. Demand is elastic if the consumer has only a few substitutes to choose from. (TRUE/FALSE) Explain! V. Short-run choices imply that at least one factor of production is fixed. (TRUE/FALSE) Explain! vi. The productivity of any input is independent and is not affected by the other resources that are used. (TRUE/FALSE) Explain! vii. When a firm is able to achieve the output indicated by a production function, it is producing with technical efficiency. (TRUE/FALSE) Explain! viii. The law of diminishing returns indicates that the marginal physical product of a variable input declines as more of it is employed, ceteris paribus. (TRUE/FALSE) Explain!

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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