1.In the market of Product "F". Assume Product "F" is a normal good. If consumers' income increase, then:

(Select All that Apply)

Helpful Hint: There are 2 correct answers.

Group of answer choices

A.Demand will shift leftwards

B.Supply will shift rightwards

C.Demand will shift rightward

D.Equilibrium Price and Quantity will increase.

E.Supply will shift leftwards

F.Equilibrium Price and Quantity will decrease.

2.

Assume that a scientific study came out confirming that consuming one teaspoon of Nutella a day decreases the rate of heart diseases. As a result, Nutella becomes more popular to consumers. In addition, news reports state that there has been a technological improvement in the production of hazelnuts leading to a decrease in the price of hazelnuts. What is likely to happen in the market of Nutella?

(Select All that Apply)

Helpful Hint: There are 3 correct answers.

Group of answer choices

A.Supply will decrease.

B.Supply will increase.

C.Equilibrium quantity will increase.

D.Demand will decrease.

E.Equilibrium quantity will stay constant.

3.

1. Review the following news article: Germans switch to costly fan heaters as gas shortage fears bite (Source: Reuters (Links to an external site.), September 11, 2022)

"Germans could overload their power grid as they switch to inefficient electric heaters in an attempt to avoid gas shortages this winter, utilities warned in an article published on Sunday.

Households have been stocking up on electric fan heaters, including portable devices, sales figures show, amid fears that Russia could cut or further limit gas supplies in the wake of its war in Ukraine.

The managing director of the German association of energy and water utilities, BDEW, told daily Handelsblatt that customers could be left with even heftier power bills if they do not use the devices sparingly.

'And they can overburden the power grids, for instance when many households switch on their fan heaters in one part of town at the same time on a cold winter's night,' BDEW director Kerstin Andreae was quoted as saying.

She said she understood people's fears of cold homes, but some of the coping mechanisms could backfire.

Germany, along with other European Union countries, is scrambling to support homes and industries burdened by a further surge in energy prices after Russia halted supplies through the Nord Stream 1 natural gas pipeline.

What is likely to happen in the market of electric fan heaters in Germany?

(Select All that Apply)

Helpful Hint: There are 2 correct answers.

Group of answer choices

a.Demand of electric fan heaters has/will decreased.

b.There will be a "gas" surplus in Germany.

c.Equilibrium Price of electric fan heaters will increase.

d.Equilibrium Price of electric fan heaters will decrease.

e.Demand of electric fan heaters has/will increased

. f.Demand will increase.

g.Equilibrium quantity will decrease at an exponential rate.

4.

Hot Cheetos is more _______________ while "food" is more _______________.

Group of answer choices

a.inelastic; elastic

b.perfectly inelastic; unit elastic

c.perfectly inelastic; elastic

d.elastic; inelastic

5.

he following excerpt is from the Obama's Poor Tax news article:

"Early in February, the president signed a law to triple the federal excise tax on cigarettes -- which will jump from 39 cents per pack to $1.01 today. His administration projects this tax hike will bring in at least $38 billion over the next five years."

Source:The Wall Street Journal

Former president Obama's administration noted that the tax increase for cigarettes would bring in "$38 billion over the next five years." What are they assuming about the price elasticity of demand for cigarettes? Explain.