1. If a goods price elasticity of supply is unit elastic and its quantity supplied increases by 10%, what must be true? A. Price must have increased by exactly 10%. B. Price must have increased by less than 10%. C. Price must have increased by more than 10%. D. Quantity supplied must have increased by 10 units. E. Quantity supplied must have increased by 20 units. 2. The suppliers of automobile A are struggling to increase production in response to price increases at the same rate as the suppliers of automobile B. What can be determined about the suppliers of automobile B? A. They sell superior products. B. They have a greater price elasticity of supply. C. They are currently experiencing unit elasticity. D. They have acquired a trade deal to boost production. E. They have acquired an increase in technology or labor. 3. If the income elasticity of demand for a good is -2, then. A. Quantity demanded and income decrease by 2 percent. B. Quantity demanded increases by 2 percent while income increases by 1 percent. C. Quantity demanded decreases by 2 percent while income increases by 2 percent. D. Quantity demanded increases by 1 percent while income decreases by 2 percent. E. Quantity demanded decreases by 2 percent while income increases by 1 percent. 4. If an import tariff in the economy above is set such that the effective domestic price is A, what represents the deadweight loss? A. D + E. B. G + K. C. I + J. D. G + I + K. E. H + J + L.