Choose the most correct answer:

6. As the price of a good increase, the elasticity of demand

a) becomes more inelastic

b) remains unitary elastic

c) becomes more elastic

d) cannot be determined

e) None of the above

7.In the context of price controls, if a surplus results,

a) the price control must have been a price floor

b) the price control must have been a price ceiling

c) rent control must have been put in place

d) both b) and c)

e) None of the above

8.The creation of a black market is the result of

a) a price ceiling

b) rent control

c) a price floor

d)both a) and b)

e)None of the above

10.Which of the following is not true

a) positive externalities lead to subsidies for consumers

b) negative externalities lead to taxes for producers

c) after government intervention spillover costs lead to increased output

d) after government intervention spillover benefits lead to increased output

e) None of the above

11.After an increase in demand and a decrease in supply

a) both price and quantity can be determined

b) both price and quantity cannot be determined

c) the only price cannot be determined

d) only quantity cannot be determined

e) None of the above

12.Which of the following is true related to utility; as the quantity of a good increases

a) total utility increases and marginal utility increases

b) total utility increases and marginal utility decreases

c) total utility decreases and marginal utility decreases

d) total utility decreases and marginal utility increases

e) None of the above

14.Toronto's housing crisis can be attributable to all but one factor

a) increased incomes of Torontonians

b) strict land-use restrictions

c) foreign interest in the city of Toronto

d) natural and geographic boundaries

e) speculation and movement of global capital