AR PRI, If the income elasticity of demand for a good is -2, then (2 points) quantity demanded and income decrease by 2 percent quantity demanded increases by 2 percent while income increases by 1 percent quantity demanded decreases by 2 percent while income increases by 2 percent quantity demanded increases by 1 percent while income decreases by 2 percent quantity demanded decreases by 2 percent while income increases by 1 percent [l O 12 (02.05HC) Given that the cross-price elasticity of goods Bee and Zee is -20 and the quantity of Bee decreases by 40 percent, which of the following statements is correct? (2 points) O They are substitutes, and the price of Zee goes up by 2 percent. O They are substitutes, and the price of Zee goes down by 2 percent. (:) They are complements, and the price of Zee goes up by 2 percent. (:) They are complements, and the price of Zee goes down by 2 percent. O They are complements, and the price of Zee goes down by 8 percent. [ O a (02.06 MC) (2 points) Demand Quantity (units) What area above represents consumer surplus at equilibrium? \fNPT X Which of the following groups would not directly benefit from the removal of an import quota on Good X? (2 points) Foreign suppliers Domestic suppliers Domestic consumers Domestic suppliers of Good Y, a complement of Good X Domestic consumers of Good Y, a complement of Good X \f[l 3 13.(02.06 MC) If a business is unable to sell all the units of its product, what might it conclude? (2 points) It is experiencing diminishing marginal returns. The global price for the good is higher than the domestic price. The current price is above equilibrium. There must be a significant per-unit tax on the good. It will need to raise its price to sell the remaining surplus. If an import tariff in the economy above is set such that the effective domestic price is A, what represents the deadweight loss