Which of the following will not lower the price of an 8K television?

a.

the number of firms in the industry begins to fall

b.

consumers' incomes fall

c.

the wages paid to people who make televisions fall

d.

the television manufacturing industry starts to receive subsidies

Suppose the price elasticity of demand for tacos is 2.0. If the price of tacos rises by 5%, there will be:

a.

a 5% decrease in quantity demanded

b.

a 2% increase in quantity demanded

c.

a 10% decrease in quantity demanded

d.

a 2.5% decrease in quantity demanded

Suppose you are willing to pay $10 for one slice of cake, $7 for a second slice, and $4 for a third. If the market price of cake is $4, and you buy three slices, you realise a consumer surplus of:

Select one:

a.

$21

b.

$10

c.

$3

d.

$9

e.

$6

The slope of the budget line is affected by the:

a.

preferences of consumers

b.

amount of goods in the market

c.

prices of products

d.

income of consumers

If a market is at equilibrium, then:

a.

the number of buyers equals the number of sellers

b.

the demand curve has the same slope as the supply curve

c.

everyone gets all they want of the product

d.

there is no shortage and no surplus at the equilibrium price