Question 21 (1 point)

Cars may be categorized as a normal good. Which of the following may represent the income elasticity of demand for cars?

Question 21 options:

a	0.4
b	-0.3
c	-0.5
d	All of the above

Question 22 (1 point)

As a result of a shift in supply the percentage change in price is greater than the percentage change in quantity. This implies that demand is :

Question 22 options:

a	Unit elastic
b	Elastic
c	Not enough information to answer
d	Inelastic

Question 24 (1 point)

The incidence of an excise tax depends on the price elasticity of supply and the price elasticity of demand. If the price elasticity of demand is _______ and the price elasticity of supply is _______, then the excise tax is paid mainly by producers.

Question 24 options:

a	Low (inelastic), high (elastic)
b	High (elastic), high (elastic)
c	Low (inelastic), Low (inelastic)
d	High (elastic), low (inelastic)

Question 25 (1 point)

Olga owns a pastry-shop which sells only chocolate croissants. Suppose last month she sold the croissants for $3 each and earned $300. This month she increases the price of croissant to $5 and earns $300. What is the price elasticity of demand for Olga's chocolate croissants?

Question 25 options:

a	Elastic, but not perfectly elastic
b	Inelastic
c	Perfectly elastic
d	Unit-elastic