Clearly indicate the single response that best answers the question or completes the statement. 1. A decrease in income will not lead to: a) a movement along the demand curve. b) a leftward shift of the demand curve. c) a rightward shift of the demand curve. dj all of the above. 2. Which of the following is likely to be the least important determinant of the demand for new homes: a) interest rates. b) household incomes. c) expectations of future home prices. d) the current price of building materials. 3. Assume a linear demand function. If the demand for WGASAs at the current price is inelastic, then a small increase in price will total revenue. a) Increase b) Decrease 4. Suppose the demand function for good X is Qx - 100 - 8Px +6P, - M. IfPx -$4, Py - $2, and M - $8, what is the cross-price elasticity of demand between good X and good Y (to the nearest hundredth)? a) 0.17. b) 0.38 () 0.21 d) 0.04