F'No need txplanatlon 'I. If both demand and supply decrease then it is a certainty that: a.Quantity bought and sold will decrease ha) and b) c.Price will increase d.Price will decrease 2. Which of the following will NOT cause an increase in demand for an inferior good? a.A fall in the cost of purchasing the good b.A rise in price of a substitute good c.A fall in income d. An increase in the good's popularity 3. Gene earns $9000 operating a safari tour. His producer surplus is $5000. His willingness to sell is: a. $9,000, b. $14,000, 0. $5,000, d. $4,000 4. After a tax, the price producers receive for the product is equal to: a.Below the original equilibrium price b.The original equilibrium price c.None of the above d.Above the original equilibrium price 5. The value of the marginal product of labour (VMPL) will be: a.We cannot say without more information b. Equal to the marginal product of labour c. Lower than the marginal product of labour d.Higher than the marginal product of labour 6. If price increases from $3.00 to $4.00, and quantity demanded falls from 600 to 200 cups: a.The price elasticity of demand will (according to the mid-point method) be 3.5 and elastic b.The price elasticity of demand will (according to the mid-point method) be 3.5 and inelastic c.The price elasticity of demand will (according to the mid-point method) be 0.29 and inelastic d.The price elasticity of demand will (according to the mid-point method) be 0.29 and elastic 7. Suppose the government requires buyers of new cars to pay a $100 tax. a.When compared to the pretax equilibrium, such a tax will increase the price sellers receive for cars b. When compared to the pre-tax equilibrium, such a tax will make buyers $100 worse off without affecting sellers c. When compared to the pre-tax equilibrium, such a tax will make both buyers and sellers worse off, but we cannot say by how much without more information d. When compared to the pretax equilibrium, such a tax will make buyers $100 worse off, but make sellers better off