c) Suppose you decrease the quantity demanded for milk from 5 liters per week to 4 Hers per week because of a fail in the price of X from $10 to $6. What is the cross price elasticity for milk over these -1 dj Continue with part (ck What is X most likely to be7 Breakfast cereal Black pepper Soy milk Dinner plates e) if the price elasticity of demand for lamps is -1.5, what is the change in quantity demanded as a result of a 20% price cut? 30% 25% 40% I) if ice cream is a normal good, Orin the demand for ice cream decreases when The income of consumers decreases The price of ice cream falls The price of yogurt falls All of the answers are correct al Suppose that producers of softwood lumber will offer to sell 10 million board feel (one inch thick with 12-inch width and 12-ich lengthy if the price is $2 per board foot, or 15 million if the price is Increases to $2.5 por board foot. What is the are elasticity of supply? 1.7 1.0 1.Ahi " the government puts a $10 per unit tax on a product and the consumer price rises by $8, which of the following statements is CORRECT? The demand for this product is necessarily alastic The supply of this product is necessarily inelastic The drop in the quantity purchased must be very large because of the prion increase None of the above I) Suppose the Canadian government claims that it has increased gasoline tax rates because it wants to discourage driving in order to ease air pollution. You may not belleve that higher gasoline taxes would lead to a lower incidence of driving because the Demand for driving is price elange Demand for driving is price inelastic Demand for driving is income inelastic Supply of driving is prion plastic It if ice cream and frozen yogurt are substitutes, a rise in the price of ice cream is likely to lead to a_in the price of frozen yogurt, assuming that the supply curve of frozen yogurt is. Rise: upward sloping Fall: horizontal Rise: horizontal Falls upward-sloping