3) Which of the statements are incorrect

a)The burden of the tax is on the producer of the demand is perfectly elastic.

b)The burden of the tax will be on the consumer when the supply is perfectly elastic.

c)The burden of tax will be on the consumer if the supply is perfectly inelastic.

d)The burden of the tax depends on elasticity.

4)Suppose U(x,y) = X^1/2 Y^1/2 and the Px=2 and Py=1 and M=100. The individual maximizes utility where:

a)X=20 and y=40

b)X=25 and y=50

c)X=33 and y=25

d)X=40 and Y=70

7) An increase in income will:

a)Increase the demand for liquid assets.

b)Reduce demand for liquid assets.

c)Have no effect on the demand for liquid assets.

d)Only have a direct effect on the supply of liquid assets.