If the demand for steel increases and, at the same time, improvements in technology lower steel production costs, what would happen to the new equilibrium price and quantity?

1) Price increase, quantity increase

2) Price decrease, quantity increase

3) Indeterminate price change, quantity increase

4) Indeterminate price change, indeterminate quantity change

In a certain region, demand for construction equipment is downward-sloping and elastic with respect to price, while supply is upward-sloping and relatively inelastic. If the state government imposes a tax on the sale of construction equipment, which of the following statements would be true about the effect of the tax?

1) More of the tax burden falls on consumers than on producers

2)More of the tax burden falls on producers than on consumers

3) None of the above

4) All of the above