Q1. Check whether the statement is true or false

1) If r = 0.1 now and forever, then the most that should be paid now for a console that provides $1000 per year is: 1,000

2) When a consumer has a quasilinear utility, the compensating variation = equivalent variation = change in consumer surplus.

3) The fraction of a quantity tax paid by buyers rises as supply becomes more own-price elastic

4) The loss total surplus is the tax deadweight loss

5) When prices are (P1, P2) = (2, 1) a consumer demands (X1, X2) = (1, 2), and when prices are (q1, q2) = (1, 2) the consumer demands (y1, y2) = (2, 1). This behavior is inconsistent with the model of maximizing behavior.