16. Suppose a country produces only two goods, cars and phones. The country's production volumes were 5,000 cars and 20,000 phones on the production possibilities frontier last year. If the country is producing 6,000 cars and 20,000 phones this year, which of the following could be the possible reason(s)? I There is an increase in the number of workers in the country this year. II. The country has developed new technology in the car production process this year. A. I only B. II only C. Both I and II D. Neither I nor II 17. If the price of steel increases in the market, what would be the impact on the supply of cars? A. The supply curve of cars shifts to the left. B. The supply curve of cars shifts to the right C. The supply curve of cars becomes steeper. D. The supply curve of cars becomes flatter: 18. A coffee shop lowers the price of its coffee to attract more customers. The reduction in price leads to a decrease in total revenue from the coffee. What could be the reason for the decrease in total revenue? A. The supply of the coffee is price elastic B. The supply of the coffee is price inelastic C. The demand of the coffee is price elastic D. The demand of the coffee is price inelastic. 19. The cost of operating a 40-person tour is $40,000 for a tour operator and the tour is already full. If the marginal cost of adding 1 more person to the tour is $1,250, the tour operator should A. add 1 person to the tour if this person is willing to pay $1,000 for the tour B. add 1 person to the tour if this person is willing to pay $1,100 for the tour C. add 1 person to the tour if this person is willing to pay $1,200 for the tour D. add 1 person to the tour if this person is willing to pay $1,300 for the tour 20. If the demand for a new drug for weight control is perfectly inelastic, which of the following statement(s) is(are) correct? I The quantity demanded for the drug will not change when the price of the drug changes II. The demand curve is horizontal A. I only B. Il only C. Both I and Ile D. Neither I nor