Question 1Tell if the following proposals are true or false in a brief justification

1.1The economics branch of the economics industry is essentially studying the degree to which scarce and scarce resources of an economic system areused to produce goods and services.

1.2 In a mixed economy, the allocation of scarce resources to the most valued uses could be achieved through the political choices of the government of the day.

Question 2

All things being equal, a decrease in the price of a product will result in:

(a) an increase in demand for this product, regardless of changes in non-price variables;

(b) an increase in the amount requested of this product, regardless of variations in non-price variables;

c) an increase in the amount requested of this product, only if the variables other than the price remain constant.

(d) an increase in demand for this product, only if non-price variables remain constant.

The supply curve of single-family homes would likely move to the right and down in the following case:

(a) the wages of construction workers arerising.

b) the price of single-family homes is rising;

(c) the price of single-family homes is falling;

(d) new, more cost-effective methods of prefabrication are being introduced in this industry;

c) the number of construction contractors is decreasing.

2.3 The following factor would result in an increase in the amount offered of new homes and not an increase in supply:

(a) adapting the construction industry to increased demand;

(b) provincial government grants to the construction industry;

(c) an increase in the price of new homes;

(d) an increase in mortgage rates.

The South Shore Transportation Commission estimates the daily demand for bus transportation on the South Shore by the following relationship:

Q_d=5420 - 2000P - 0,1R + 100P_b

Where: Q_drepresents the number of bus tickets requested daily;

Prepresents the price of the bus ticket (P - $2);

Arepresents the average weekly income of transit users (R - $200);

P_brepresents the average cost of a trip per car to cover the same distance (P_b - $6)

3.2.1(1 point) Give the expression of the request in the strict sense and represent it graphically. Make your approach clear in the space below the graph.

You are told that the average user income has doubled, as has the average cost of travelling per car to cover the same distance (which also doubled). Find the new expression of the request in the strict sense and represent it on the graph in question 3.2.1. What do you notice?

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3.2.3You are told that only the average cost of a car trip to cover the same distance that has doubled (notthe average income ofusers). Find the new expression of the request in the strict sense and represent it on the graph in question 3.2.1. What do you notice?

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