QUESTION Which of the following statements is false? a. Ham has a higher price e

Question

QUESTION Which of the following statements is false? a. Ham has a higher price elasticity of demand than meat. o b. Carrots have a higher price elasticity of demand than vegetables O c. Soap has a higher price elasticity of demand than Ivory Soap O d. Peaches have a higher price elasticity of demand than fruit. QUESTION 4 Consumers will pay the full tax that is placed on the sellers of a good if demand is O a. perfectly inelastic; unit elastic o b. perfectly inelastic; perfectly elastic O c. perfectly elastic, perfectly inelastic o d. perfectly inelastic; perfectly inelastic O e. elastic; inelastic or supply iS_ QUESTION 5 Exhibit 51 11 p.m Carn Freeway Spoce _at 11 p.m Refer to Exhibit 5-1, which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. At a zero money price, there is a a. shortage, equilibrium o b. surplus; a shortage O c. surplus: equilibrium o d. shortage, a surplus of freeway space at 8 a.m. and

Explanation / Answer

a) "C"

Soap has a higher price elasticity of demand than ivory soap. All the other options mention a specific product like Ham, Carrots, and peaches which will have less elasticity compared to a generic.

b) "B"

If the demand is perfectly inelastic and supply is perfectly inelastic then the consumer will pay all the taxes.

c) "A"

At 8 am there is a shortage and at 11 pm there is an equilibrium.

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