1.Which of the following willclearlycause a decrease in the total revenue for the entire market?

Buyers' income increases and sellers expect the price to increase

The implementation of an effective price floor on the market

Tastes and preferences move away from the product

Buyers' income increases

2.Consider cell phones. Over time, people consider this device increasingly essential. What would this mean for its PED?

More elastic

More inelastic

More cosmetic

None of the above

3.From the lecture slides, recall the PES of housing in California's less regulated cities which is 0.36. What can be inferred from this number?

An increase in price causes a huge increase in supply

PES is elastic

An increase in price causes an increase in total revenue

None of the above

4.Consider the good known as Rosas. Initially, a tax is placed on the buyers of this good. Suppose that due to intense pressure from consumer groups, the government decides to switch the tax to being on sellers. Which of the following is a result of this switch?

Sellers pay the entire tax

Government obtains more revenue

Price buyers pay decreases

None of the above