Question 6 The price elasticity of demand for toasted muesli would increase if: Not yet answered O a. there was an increase in complements for toasted muesli Marked out of O b. the effect of a price rise was measured over a long period of time 1.00 O c. toasted muesli was considered a necessity product Flag question O d. the definition of the toasted muesli market was made very broad Question 7 Assume that a four per cent decrease in income results in a two per cent increase in Not yet the quantity demanded of a good. The income elasticity of demand for the good is: answered Marked out of O a. positive and therefore the good is a normal good 1.00 O b. negative and therefore the good is an inferior good Flag question O c. positive and therefore the good is an inferior good O d. negative and therefore the good is a normal good Question 8 If Australia is better than the US at producing wheat, but the US is better than Australia Not yet at producing cars, the US should: answered Marked out of O a. subsidise its wheat industry so that it can compete with Australian wheat 1.00 O b. sell wheat to Australia and buy Australian cars Flag question O c. impose a tariff on Australian wheat in order to protect jobs in the US car industry O d. sell cars to Australia, and buy Australian wheat