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I need help on these 5 microeconomic questions: Question 6 (2.5 points) Suppose a market for computers is competitive. There are only two consumers: Peyton
I need help on these 5 microeconomic questions:
Question 6 (2.5 points) Suppose a market for computers is competitive. There are only two consumers: Peyton and Eli. Peyton's demand for computers is given by Q = 5 - PB, and Eli's demand for computers is given by Q = 3 - P. Which of the following equations describes the market demand equation for the computer market? 0 The market demand curve will have two linear segments: P = 15 - 3Q for prices above $15, and P = 6 3/4Q for prices between $15 and $0. O The market demand curve can be derived by summing the demand function of Peyton and Eli as P = 9 - 2Q for any price level. 0 The market demand curve will have two linear segments: P = 15 - 3Q for prices between $3 and $15, and P = 6 3/4Q for prices between $3 and $0. O The market demand curve can be derived by summing the demand function of Peyton and Eli as P = 18 - 4Q for any price level. Question 7 (2.5 points) The discovery of a new technique for growing wheat leads to an increase in the supply of wheat. Wheat farmers will realize an increase in total revenue if Q the demand for wheat is elastic. O the weather is very favorable for wheat production this season. 0 the demand for wheat is inelastic. O the supply of wheat is elastic. O the supply of wheat is inelastic. Question 8 (2.5 points) If the price elasticity of demand for iPhones is 10, and their price changes by 10%, what do you expect will happen to demand? O The quantity demanded will change by 10%. O The quantity demanded will change by 100%. O The quantity demanded will not change. 0 The quantity demanded will change by 1%. Question 9 (2.5 points) The price of good Y decreased from $7 to $5. Meanwhile, the sales of good X decreased from 14 units to 10 units. Cross-price elasticity of demand of goods X and Y, calculated using the midpoint method (this is the same as the arc elasticity method), is _ _ and goods X and Y are ______ : O 1; substitutes O 1; complements O 1; substitutes O 1; complements Question 10 (2.5 points) Which statement is true? 0 Tax of same size yields larger DWL when supply is less elastic 0 Tax of same size yields larger DWL When supply is more elastic 0 Tax revenue increases with the size of tax. 0 DWL decreases with the size of the taxStep by Step Solution
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