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Q21 0.15 Points Consider the market for good X. Suppose that the government offers a subsidy. In the market equilibrium with government intervention, a decrease in the cost of inputs for good X leads to O A. an increase in quantity and no change in both prices. O B. an increase in both prices and a decrease in quantity. O C. a decrease in both prices and no change in quantity. O D. an increase in quantity and a decrease in both prices. O E. None of the above. Save Answer Q22 0.15 Points Consider the market for good X. Suppose that the government offers a price support. In the market equilibrium with government intervention, a sudden hurricane that destroys many of the firms' factories where good X is stocked leads to (assume that the price support is effective after the hurricane destroys stock) O A. an increase in quantity and no change in price. O B. an increase in price and a decrease in quantity. C. a decrease in quantity and no change in price. O D. an increase in quantity and a decrease in price. O E. None of the above. Save Answer Last saved on Nov 02 at 12:04 AM Q23 0.15 Points Demand and supply are defined by P = 100-4Q and P = 6Qs + 10. Suppose that the government imposes a sales tax of $7. In a market equilibrium with government intervention, DW L** is equal to O A. $1.85. O B. $2.45. O C. $3. O D. $3.8. O E. None of the above.Q24 0.15 Points Demand and supply are defined by P = 100-4Q and P = 6Qs + 10. Suppose that the government offers a subsidy of 6 dollars. In a market equilibrium with government intervention, PS** is equal to O A. $0. O B. $276.48. O C. $324.48. O D. $552.96. O E. None of the above. Save Answer Q25 0.15 Points Demand and supply for good X are defined by P = 12-Q and P = Q*/2. Suppose that the government deems good X unhealthy for consumers and thus buys an amount equal to exactly half of what is sold in a market equilibrium without government intervention (in order to destroy it). In a market equilibrium with government intervention, P** is equal to O A. $2. O B. $4. O C. $5. O D. $8. O E. None of the above. Save Answer Q26 0.15 Points Consider the demand for good X. Suppose that, in response to an 16% increase in price, quantity demanded decreases by 4%. Then, the price elasticity of demand is equal to O A. -0.833333. O B. -0.333333. O C. -0.25. O D. -2.5. O E. None of the above.Q27 0.15 Points Based on your answer to Question 26, how would you classify the elasticity of demand for good X? O A. Elastic. O B. Inelastic. O C. Unit elastic. O D. Perfectly elastic. O E. None of the above. Save Answer Q28 0.15 Points Suppose that the demand side of the market for orange juice is composed of three individuals, A, B, and C. Let P be the price of one liter of orange juice and Qd be the quantity demanded of orange juice in liters. Individual A buys only one liter of orange juice if the price falls below her reservation (or choke) price of 20 dollars. Individual B's demand for orange juice is defined by Q% = 10-2P. Individual C's demand for orange juice is defined by P = 10-2Q2. The choke price of Individual B is O A. $10. O B. $20. O C. $5. O D. $2. O E. None of the above.Q29 0.15 Points Suppose that the demand side of the market for orange juice is composed of three individuals, A, B, and C. Let P be the price of one liter of orange juice and Qd be the quantity demanded of orange juice in liters. . Individual A buys only one liter of orange juice if the price falls below her reservation (or choke) price of 20 dollars. Individual B's demand for orange juice is defined by Q? = 10-2P. Individual C's demand for orange juice is defined by P = 10-2Q%. The maximum quantity demanded of orange juice in the market is O A. 16. O B. 15. O C. 13.5. O D. 17. O E. None of the above