Section A: Short Answers - True/False Answer four (4) of the following five (5) questions in this section as described for each question. Where appropriate, be sure to justify your responses along with showing the appropriate formulae, as no marks will be rewarded without justification. Each question is worth 5 marks. 1. Suppose a monopolist has and inverse demand function of p(y) = a - by, a cost function c(y)=cy so that is has a constant marginal cost equal to c per unit. This monopolist is currently operating where leal = 3. If the government were to impose a per unit quantity tax of $6, by how much more does the price rise to consumers if the monopolist has constant elasticity demand curve instead of a linear demand curve? P(y) = a - by 2. Explain intuitively and show why a monopolist will never operate on the inelastic portion of the demand curve. 3. How do you know that firm supply is always on the upward sloping portion of the marginal cost curve