11. Suppose you are a marketing consultant for a competitive firm that products gadget and you must determine what the effect of a decrease in labor costs will be for future planning. A decrease in labor costs will cause the largest decrease in price when

A:Demand is elastic and supply is inelastic

B: Bots supply and demand are inelastic

C: Demand is inelastic, and supply is elastic

D: Both supply and demand are elastic

12. The government decides to increase tax on cigarettes to discourage smoking. If the tax on a on pack is increase from $1 to $5, the deadweight loss from the tax increase by a factor of

A: 10B15C25D5

13. Consider the market for pizza in a large city. Assuming that pizza is a normal good, Identity what happens to the equilibrium price and quantity after the price of tabor rises:

A The equilibrium price is expected to decrease, and the equilibrium quantity is expected to decrease.

B The equilibrium price is expected to increase, and the equilibrium quantity is expected to increase.

C The equilibrium price is expected to increase, and the equilibrium quantity is expected to decrease.

D The equilibrium price is expected to decrease, and the equilibrium quantity is expected to increase.

14 Consider a market with an equilibrium quantity of 100 and an equilibrium price of 50. Suppose the government impose a 10 dollar tax per unit on consumers. After which the quantity sold in the markter reduces to 80. What is the deadweight loss of the tax?

A 10

B 100

C 250

D 50