After justifying your answer

2.1 All else being equal, a decrease in the price of a product will result in:

(a) an increase in demand for that product, regardless of changes in variables other than price;

(b) an increase in the requested quantity of that product, regardless of changes in variables other than price;

(c) an increase in the quantity of the product requested, only if variables other than price remain constant.

(d) an increase in demand for that product, only if variables other than price remain constant.

2,2The supply curve for single-family homes would likely move to the right and down in the following case:

a) the wages of construction workers are increasing.

(b) the price of single-family homes increases;

(b) the price of single-family homes decreases;

(c) new, more economical methods of prefabrication are introduced in this industry;

(c) the number of construction contractors decreases.

2,3The following factor would result in an increase in the supply of new homes and not an increase in supply:

(a) the adaptation of the construction industry to increased demand;

(b) subsidies provided by the provincial government to the construction industry;

(c) an increase in the price of new homes;

(d) an increase in mortgage rates.

The Commission de transport de la Rive Sud estimates the daily demand for bus transportation on the South Shore through the following relationship:

3.1 Qd=5420 - 2000P - 0.1R + 100Pb

where:Qd is the number of bus tickets requested daily;

P is the price of the bus ticket (P = $2);

R is the average weekly income of transit users (R = $200);

Pb represents the average cost of one trip per car to cover the same distance (Pb = $6)

Give the request expression in the strict sense and represent it graphically. Clearly present your approach in the space below the graphic.

3.2 You are told that the average user income has doubled, as has the average cost of a car trip to cover the same distance (which has also doubled). Find the new expression of the request in the strict sense and represent it on the graph of Question 3.2.1. What do you notice?

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3.2.3 You are told that only the average cost of a car trip to cover the same distance that has doubled (not the average income of users). Find the new expression of the request in the strict sense and represent it on the graph of Question 3.2.1. What do you notice?

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