1.Suppose there are 100 consumers in the computer speaker market, each with an identical demand curve given by Q_i= 10 - 0.1P, where P is the price per pair of speakers, and Q_i measures the quantity demanded of computer speakers by each person. The market supply for computer speakers is given by Q^S = 20P - 200. The equilibrium quantity in the computer speaker market is ____.

100

40

300

600

2.Suppose the price of a Giffen good, X, increases. In this case, the substitution effect states that the consumer purchases _____ of good X, and the total effect is _____ in consumption of good X.

more; a decrease

more; an increase

less; an increase

less; a decrease

3.Assume that the price of Good X is $100 per unit and that the price of Good Y is $100 per unit. When income increases from $1,200 to $1600, Good Y is a (an) _____ good.

luxury

inferior

necessity

Giffen