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7. The following is an economic model showing factors affecting the sale of Mcdonald's hamburgers in Toronto: Q-[P. PBK burgers, Y. Pn, Tp) where Q
7. The following is an economic model showing factors affecting the sale of Mcdonald's hamburgers in Toronto: Q-[P. PBK burgers, Y. Pn, Tp) where Q sales of McDonald's burgers, P-Price of Mcdonald's burgers, PBK burgers-Price of Burger King burgers, Y-Consumer Income, Pn-Population, and Tp Tastes and preferences for MeDonald's burgers Which of the following is a dependent variable? PBK burgers Pn 8. Melanie, an economist, develops a theory that "As the price of Burger King burgers decreases, sales of Mcdonald's burgers will decrease." According to the Ceteris Paribus Assumption, PBK burgers and Q will remain constant only P and Y remain constant Pn, Y and Tp remain constant, while all other variables change P, Y, Pn and Tp remain constant 9 Which of the following is a normative statement? There are opportunity costs associated with pollution We should force firms to close down if they pollute Increasing tax rates for firms that pollute will help reduce pollution Increased pollution increases society's health care costs None of the above
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