Question

fill in the blanks using presice economic terminology

Part B: Fill in the blank using precise economic terminology. 2 pom for parking. This Q 1-7: Although "Parking Rates May Be Peaking in Boston, they had been increasing for the past several years. This is because more people have been driving into town thus increasing the (1) demand would normally result in an increase in (2) and (3) However, the government has imposed a cap on parking spaces in Boston, making supply perfectly in that range. As a result, many drivers have been choosing to park illegally and pay the fine, which is now relatively (and often times actually) less (5)_ Parking in a garage and parking illegally on the street are essentially _goods. The notation that would describe this relationship is (7) Q 8-14: Ten years ago, cell phones would have had an income elasticity coefficient (<0, 0, 0, but <1, >1) (8) but today they no doubt have an Ey of (<0, 0, >0, but <1, >1) (9)_ indicating that, whereas they were once (superior, normal, capital, substitute) (10) goods, they are now (superior, normal, _goods. inferior, essential, merit) (11) This transformation has occurred largely because there has been a decrease in their (demand, supply, price, quantity) (12) brought about by an increase in (demand, quantity demanded, supply, quantity supplied) (13) The demand for landline phones has then become (greater, more elastic, more steeply sloped) (14)

Answer 1

Answer 1-7:

1. Demand

2. Equilibrium Price

3. Equilibrium Quantity

4. Inelastic

5. than the parking charges

6. Substitute

7. As the price of the parking charges have increased, the quantity demanded of illegal parking has also increased. Thus, both goods are substitute goods.