TRUE or FALSE. If the statement is correct, write TRUE on your answer sheet. If the statement is incorrect, write FALSE. Explain why you answered TRUE or FALSE. 1. To some extent economics is about trade-offs. 2. If there is evidence that consumer income and the price of smartphones have influence on the demand for tablet computers, the leftward shift in the demand curve of tablet computers is caused by a decrease in the price of tablet computers. 3. If fish and chicken are substitute goods, when the price of fish decreases with bountiful harvest, there will be a decrease in the quantity demand for chicken.
TRUE or FALSE. If the statement is correct, write TRUE on your answer sheet. If the
statement is incorrect, write FALSE. Explain why you answered TRUE or FALSE.
1. To some extent economics is about trade-offs.
2. If there is evidence that consumer income and the price of smartphones have influence on
the demand for tablet computers, the leftward shift in the demand curve of tablet
computers is caused by a decrease in the price of tablet computers.
3. If fish and chicken are substitute goods, when the price of fish decreases with bountiful
harvest, there will be a decrease in the quantity demand for chicken.
4. If organic virgin coconut oil (VCO) has been proven to enhance your immune system
against corona virus, the price VCO will increase because of a shift in supply and an
unchanging demand curve.
For # 5-8. The demand curve for prepaid internet services is given by Pd = 80 – 0.2Q and
the supply curve is given by Ps = 20 + 0.2Q.
5. The
6. An imposition of a tax of PHP10 per unit on prepaid internet services will result in a
7. An imposition of a tax of PHP 10 per unit will reduce the CS by 687.5 and PS by 687.5.
Thus, the net loss to society with the imposition of a tax is 1375.
8. The tax collected by the government with the imposition of this tax is equivalent to 1500.
This tax revenue is a net loss to society.
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