Question

Please help with these questions

Question 11 0.4 pts A new tax on gasoline causes a reduction in the purchase of new vehicles with poor fuel economy. This is an example of what type of incentive? O negative direct O positive indirect O The tax does not provide an incentive. O negative indirect O positive direct Question 12 0.4 pts The system encourages innovation by creating a powerful financial reward for creativity O trade-off O tax credit O patent direct incentive indirect incentive Question 13 0.4 pts When the price of erasers increases from $1.50 to $2.50, the quantity demanded of pencils is unchanged. The cross-price elasticity of demand between erasers and pencils is because erasers and pencils are 0 0; unrelated * complements ○ 1: substitutes 0 %; complements O 0; normal goods

Answer 1

Q11. Option 2. As it would have reduction in vehicles which would reduce the pollution caused to the environment
Q12. Option 3
Q13. Option 2. Complementary goods have negative cross price elasticity
Q14. Option 5. To test whether the hypothesis is true or is just a chance factor
Q15. Option 3. Oil being an input, with the increase in price of the oil the cost of production increases which increases the price. For the increased cost of production the quantity supplied would decrease