2638 words U? Font Size English (United States) Ppart 1: True or False(1 point/question) Determine, without justifying your answer, whether these statements are true (T) or false (F). Type your answer directly in the \"True (T) / False (F )\" column True (T)/ False (F) When a country opens up to international trade to become an importer of a good, the domestic consumers of this good are advantaged while the producers are penalized. Taxes cause deadweight losses because they prevent economic agents from 2 deriving certain gains from trade. 3 In a game where the prisoner's dilemma is repeated, players may be able to achieve the same result as that of cooperation 4 Most economists agree that due to the problem of excess capacity, monopolistic competition harms the welfare of society. 5 In the long term, a duopoly is guaranteed to derive positive economic benet. 6 The long mm supply curve for a competitive industry is always horizontal. 7 A U-shaped average variable cost curve necessarily implies decreasing marginal productivity. 8 The marginal seller is the rst to exit the market if the price is deemed too low. 9 A tax of $5 per unit imposed on buyers generally lowers the market price by more than $5. 10 If the price elasticity of demand is zero, then the seller can raise the price as much as he wants to get an arbitrarily high sales gue. ' : Focus + 123% AutoSave OFF A A CGG ... w- ExamenFinalAut2022_ay.fr.en - Saved to my Mac Home Insert Draw Design Layout References Mailings Review w Tell me Share Comments Calibri (Bo... v 11 A A Aa A AaBbCcDdEe AaBbCcDdE AaBbCcDdEe AaBbCcDdEe AaBbCcDdEe AaBbCc Paste BIUvb X X A DAY Norma Body Text List Paragraph No Spacing Table Paragr.. Heading 1 Styles Dictate Editor Pane 31. Consumer Theory (15 points, 3 points per game) Suppose that the consumer whose preferences are illustrated by the graph below has an income M = 1750C$ and that the price of the two goods he consumes is respectively PX = 35 C$ and PY = 10 C$. Answer the following questions using the information in Figure 2. Figure 2 -350- Bien Y -300 C 250 200 150 D B 100 50 20 40 60 80 Bien X 100 a. Which point in Figure 2 corresponds to this consumer's optimal consumption basket? Why ? Explain the economic logic of your answer. Page 10 of 16 2638 words X English (United States) Focus E + 123%AutoSave OFF A A CGG ... w- ExamenFinalAut2022_ay.fr.en - Saved to my Mac Home Insert Draw Design Layout References Mailings Review w ? Tell me Share Comments Calibri (Bo... v 11 A A Aav A EV EVEEVENT AaBbCcDdEe AaBbCcDdE AaBbCcDdEe AaBbCcDdEe AaBbCcDdEe AaBbCc Paste BIUvab X X A DAY Normal Body Text List Paragraph No Spacing Table Paragr.. Heading 1 Styles Dictate Editor Pane b. Define and calculate the marginal rate of substitution (TMS) at this point. Remember to show your calculations in an understandable and mathematically accurate way. c. If this same consumer now has an income equal to C$700 and faces prices PX = C$14 and PY = C$2, what is his new optimal consumption basket? Explain what happened from a mathematical and economic point of view. d. Imagine that this consumer is at point D. What is his income if PY = 10 C$? Why ? . Imagine that this consumer is at point D. Following the rise in the price of good X, the new point of equilibrium for this consumer is point B. Explain what should be done to break down the passage from point D to point B between an income effect and a substitution effect. Is good X normal or inferior? Why ? Page 11 of 16 2638 words X English (United States) Focus E + 123%