QUESTION 1 10 points Save Answer The Supply and Demand curves below represent the market for butter. Anticipating low Demand in the next few weeks, stores begin pulling butter off the shelves NOW Additionally, a news report a few days later revealed a severe shortage of biscuits, which are a complement for butter As a result of these shocks, both the Supply and Demand for butter have changed. Using the graph below, click @ the number for the zone where the new equilibrium will lie P Selected Coordinates Clear QUESTION 2 10 points Save Answer Most college students have backpacks, which are relatively cheap. But when they graduate and get a highpaying job, they have (more/less) income and can buy something fancier (like a messenger bag, a purse, or a briefcase). Since you would buy v (more/less) messenger bags with your new job's income, messenger bags are alan (elastic/inelasticlnormallinferior) good. Since you would buy v (more/less) backpacks with your new job's income, backpacks are therefore alan (elasticlinelasticormallinferior) good QUESTION 3 10 points Save Answer Last week, a store in Santa Barbara, CA sold 10 pineapples for $2 and 25 Psych DVDs for $7 each. This week, it sold pineapples for $5 and sold 5 Psych DVDs. Since the price of pineapples (increased/decreased), the Law of Demand implies that the quantity of pineapples sold should have (increased/decreased) Furthermore, since the quantity of Psych DVDs v (increased/decreased) in response to pineapples, we can say that pineapples and Psych DVDs are (complementsormal/substituteslinferior) QUESTION 4 10 points Save Answer To stop the richest teams from always getting the best players, the NFL sets annual "salary caps\" that define the maximum amount each team can spend on its players' salaries. For 2020, the cap was set at $198.2 million. This cap is a price (ceiling/oor) Regardless of the rules, the actual amount that teams spend on their players is determined by the Supply and Demand for good players. In other words, what teams actually spend each year is the P\" of their Supply and Demand curves During the 2020 season, 26 of the 32 NFL teams (including the Patriots and the Buffalo Bills) were below the cap, while 6 teams (including the Steelers, Seahawks, and Giants) were over the cap (source: h_ttps://www. spotrac. comfl/cap_/2020/) Given this information, we can conclude that the Patriots had a v(bindinglnon- binding) cap and could sign (aka "Demand") (more/less) players for next year; while the Steelers have a (bindingon- binding) cap, so they should Demand (more/|ess) players for next year QUESTION 5 When deciding what to tax, we want to tax (luxuriesecessities) instead of V so that we can take out a v (large/small) tax on many people instead of (large/small) taxes on just a few. This is because v (large/small) taxes create more deadweight loss (DWL) than (large/small) taxes QUESTION 6 Suppose that a Supply curve is given by OS = 95 + 1P, and P" = 10. What is the value of Producer Surplus? Round your answer to two (2) decimal places if necessary :1 QUESTION 7 WARNING: The following has a "trick" component. Please read the text thoroughly, don'tjust \"use the formula" Suppose that the Supply and Demand of maple syrup are given by Q = 100 - P Q = 47 + 2 P If the government sets a binding price oor at P=$50.78, what will be the value of Consumer Surplus? Round your answer to two (2) decimal places if necessary :1 10 points 10 points 10 points Save Answer Save Answer Save Answer QUESTION 8 Suppose that Demand is given by Qd = 510 4P and the government sets a Qtax of 17. What is the value of the buyer's price (Pbuy)? Round your answer to two (2) decimal places if necessary :1 QUESTION 9 Suppose that Supply is given by 05 = 2 + 7P and the government sets a Qtax of 19. If Pbuy = 21, then what is the size of the tax (i.e. tax = Pbuy Psell)? Round your answer to two (2) decimal places if necessary :1 QUESTION 10 Bhutan is a small country between Tibet and India. As a primarily mountainous country with no oil, no gas, but many rivers, it has multiple hydroelectric power plants. In the summers, Bhutan produces more than enough energy for all of its residents, and actually exports electricity to India Based on this information, we can conclude that the summer price of electricity in Bhutan must be than the prevailing world price of electricity in India Unfortunately, Bhutan's winters are so harsh that it becomes a net IMPORTER of gasoline from India. Based on this information, we can say that the winter price of gasoline in Bhutan must be than the prevailing world price (see https:l/en.wikipedia.org/wiki/Energy in Bhutan) 1 0 points 1 0 points 1 0 points Save Answer Save Answer Save