X aTNas Question 6 Which of the following statement regarding government intervention is correct? O An example of price floor is a minimum wage O An effective price floor should be set below the equilibrium price O An effective price ceiling should be set above the equilibrium price O Price controls promote efficiency in resource allocation as it does not create any shortage or surplus Previous MoX Cameras -XUOBQB now Question 7 The value of a perfectly elastic demand is O zero O less than 1 but greater than zero O infinity O exactly 1 Previous MOOZX ct Insearch Exams department via: Email: Exams@insearch.edu.au or Call +61 02 9218 4946 Question 8 The value of price elasticity of demand of Kensington mangoes is (-)1.75, which of the following is the strategy undertaken by the supermarket in their pricing strategy? O The supermarket should increase the price because it will raise the total revenue. O The supermarket should maintain the price because it will raise the total revenue. O The supermarket should reduce the price because it will raise the total revenue. O The supermarket should do nothing because the demand is unit clastic. Previous NeXUOBQB help now Question 9 The determinant(s) of the price elasticity of demand is / are: O the number of substitutes available O all of the answers O luxuries versus necessities O time dimension Previous