Question 26(1 point)

The owner of a supermarket knows that when the price of potatoes increases by 10% the demand for tomatoes decreases by 10%. Given this information, we know that potatoes and tomatoes are _______.

Question 26 options:

a	Normal goods
b	Complements
c	Substitutes
d	Inferior goods

Question 28(1 point)

During the Toronto Film Festival, Pizza Pizza decreases its prices from $2.00 per slice to $1.50 per slice. Andy would choose to have 3 slices of pizza if the price was $2.00 per slice, and he would also choose to have 3 slices if the price was reduced to $1.50 per slice.

Which of the following statements isTRUE?

Question 28 options:

a	Andy's marginal benefit from the third slice does not change with the price of the slice
b	Andy's marginal benefit from a fourth slice is less than $1.50
c	Andy's marginal cost for a fourth slice has decreased due to the price drop
d	All of the above

Question 29(1 point)

The market for lattes is in a competitive equilibrium, as shown above. The government decides to impose a $1.50 excise tax on latte producers. After the tax is imposed what is the new producer surplus?

Question 29 options:

a	200
b	600
c	400
d	800

Question 30(1 point)

The market for jeans is in equilibrium with price at $36 and quantity at 6500. The government introduces a $1 per unit tax on

jeans buyers. This causes equilibrium quantity to decrease to 6100. What is the deadweight loss?

Question 30 options:

a	400
b	200
c	300
d	100