QUESTION 15Suppose a unit (or sales) tax of 3£ is imposed on good x. This is equivalent to:O a. None of the other answers is correctb. An increase of 3% in the price of good xOc. An increase of 3£ in both the price of good x and the price of good yOd.An increase of 3£ in the price of good xO e. A decrease of 3£ in the consumer's incomeQUESTION 16If a consumer's income doubles, the marginal rate of substitution computed at any given consumption plan xa. Doublesb. Remains unchangedc. Decreases in absolute valeOd. Remains unchanged only if also all prices doublee. Increases only if the consumption plan x was the optimal one at the old income level

QUESTION 15 Suppose a unit (or sales) tax of 3£ is imposed on good x. This is equivalent to: O a. None of the other answers is correct O b. An increase of 3% in the price of good x OC. An increase of 3£ in both the price of good x and the price of good y O d. An increase of 3£ in the price of good x O e.A decrease of 3£ in the consumer's income

QUESTION 15 Suppose a unit (or sales) tax of 3£ is imposed on good x. This is equivalent to: O a. None of the other answers is correct O b. An increase of 3% in the price of good x OC. An increase of 3£ in both the price of good x and the price of good y O d. An increase of 3£ in the price of good x O e.A decrease of 3£ in the consumer's income

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 12 Assume that the price of cheese has decreased and the price of garlic bread (a substitute good) has decreased at the same time. How this will affect the market for pizzas? O a. Quantity of pizza would fall, and the effect on price would be ambiguous. O b. Price of pizza would rise, and the effect on quantity would be ambiguous. O. Quantity of pizza would rise, and the effect on price would be ambiguous. O d. Price of pizza would fall, and the effect on quantity would be ambiguous. QUESTION 13 Samuel owns a laundromat business in Queens, New York. He recently purchased 2 new washing machines and 2 new dryers. This will cause O a. the demand for laundromat services to increase. O b. the supply of laundromat services to decrease. O c. the demand for laundromat services to decrease. O d. the supply of laundromat services to increase. QUESTION 16 A likely example of complementary goods for most people would be O a. golf club and baseball bat. O b. tea and coffee. O c. CPA…
Suppose that video game discs are a normal good.. If the income of video game players increases, you predict that in the market for video games, O both equilibrium price and quantity will fal. O equilibrium price will increase, and quantity will decrease. o both equilibrium price and quantity will increase. O equilibrium price will fall, but quantity will increase.
Suppose an economic boom causes incomes to increase and, at the same time, drives up wages for the sales representatives who work for cell phone companies. Assume that smartphones are a normal good. This will cause the: O price of cell phones and the equilibrium quantity to rise. O price of cell phones to rise, but the change in the equilibrium quantity is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply. O price of cell phones and the equilibrium quantity to fall. O quantity of cell phones to rise, but the change in the equilibrium price is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply.
QUESTION 10 If the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to S1.80 will: O A. increase the quantity demanded by about 2.5% O B. decrease the quantity demanded by about 2.5% O C.increase the quantity demanded by about 25% O D. increase the quantity demanded by about 250%
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A change in "demand" of a good is caused by demanded" of a good is caused by a change in "quantity O a change in the price of the good; a change in the price of a complement. O a price ceiling; a change in the price of the good. O a change in the price of a substitute; a change in the price of the good. O a change in the price of a complement; a change in the price of a substitute.
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the Price elasticity of demand is calculated as: Select one: O a. %AP/%AQD O b. %AQs/%AQD O c. %AQ/%AQs O d. %AQ/%AP If the price elasticity of demand has a value of -1.3, this means: Select one: O a. A 1 percent increase in the price of the good causes quantity demanded to decrease by 1.3 percent. O b. A 1 percent increase in the price of the good causes quantity demanded to increase by 1.3 percent. O c. A 1.3 percent increase in the price of the good causes quantity demanded to decrease by 1 percent. O d. A$1 increase in price causes quantity demanded to fall by 1.3 units.
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