The market for good X is perfectly competitive. Last year, the demand for X shifted to the left, while the supply of X shifted to the right. How did these changes affect the equilibrium price and quantity of good X in this market? Use the following four statements, I - It is possible that the quantity of X did not change. II - It is possible that the price of X did not change. Ill - It is possible that both the price and the quantity of X increased. IV - It is possible that both the price and the quantity of X decreased. O II is true. O III is true. O l is false. O I and II are true. O I and IV are true.Suppose that the government provides a dollar-for-dollar subsidy to low-income family's housing expenditure. Afamily with income $1000 a month needs to decide its monthly rent (H) and All-OtherGoods (Y) spending. The family's utility function is U(H, Y) = HA0.5YA0,5. With this dollar-for-dollar subsidy program, this family will rent a house with monthly rental C) $250 C) $500 () $750 C) $1000 C) $1250 Consider a perfectly competitive labor market. The labor demand LD and supply LS are given by functions, Ld=200-4w, Ls=-10+6w, where w is the wage and L is the number of workers. The government wants to understand what will happened if it introduces a $15 tax on each worker hired. If the government introduces this tax, then the new wage paid by the employer will be 015 020 025 030 035 In a perfectly competitive market, a rm uses capital K and labor L to produce output q. The rm's production function features K and L as perfect complements. To produce one unit of output, the firm needs two units of capital and half unit of labor. The prices of capital and labor are r = 3 and w=4, respectively. In addition to the input prices, the firm must pay a $3 tax for each unit of capital used. The cost function of this rm is O 3a O 100 O 120 O 14G O 160 Consider the following intertemporal consumption problem with one good and two periods. The quantity of the good consumed in period 1 and period 2 are q1 and q2. The price of each unit of the good is $1 in both periods. The consumer's income is I1 =1 5 in the first period and |2=30 in the second period. The consumer can borrow or save money at the interest rate of 20%, that is, r=0.20. The consumer's utility function is U(q1, q2) = q1q2. The consumer optimally chooses q1 and q2. The consumer will purchase q2= in the second period (your answer should be a number). 024 035 030 012 020