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a. For the consumer's household , which product has the higher price elasticity of demand , bread or lettuce ? Briefly explain b. Is the

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a. For the consumer's household , which product has the higher price elasticity of demand , bread or lettuce ? Briefly explain b. Is the cross -price elasticity of demand between lettuce and other green vegetables positive or negative for this consumer ? Explain briefly c. Are other green vegetables and lettuce complements or substitutes for this consumer? Why? 3. Suppose you could buy shoes one at a time , rather than in pairs . What do you predict the cross -price elasticity for left shoes and right shoes would be ? (1 point ) 4. In 1997 , the federal government reinstated a 10 % excise tax on airline tickets . The industry wanted to pass on to the buyers the full 10 % ticket tax , but was only able to boost fares by 4%. ( 3 points ) a. What can you conclude regarding thee elasticity of demand for airline tickets? b. If you know that elasticity of demand is 2, and the elasticity of supply is 1, who pays the larger portion of the tax ? c. The quantity supplied of land is constant regardless of price . Suppose a tax of 10 % is placed on the rental price of land . Who will pay the greater share of such a tax ? 3. The federal government decides to require that car makers to install new anti-pollution equipment that costs $1,000 per car. Under what conditions can carmakers pass almost all of these costs along to car buyers? ( 2 points ) A) Under what conditions can carmakers pass very little of these costs along to car buyers

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