Question

YouTube ...l 4G 4:49 PM < economic mid_20181212212440-1 81% ☺ 2 of 7 Choose the right answer for the following questioned and fill in the answer on the first sheet. 1 point each 1. The relationship between quantity supplied and price is _and the relationship between quantity demanded and price is A direct, inverse B. inverse, direct C. inverse, inverse D direct direct 2. An increase in the tax on cigarettes raises the price of cigarettes by shifting the demand curve for cigarettes rightward. B domand curve for cigarettes leftward. C. supply curve for cigarettes rightward. supply curve for cigarettes loftward. Marginal Marginal Benefit and Marginal Cost (Dollars) Marginal Benefit Quantity of Shoes 3. Refer to the diagram for athletic shoes. The optimal output of shoes is A. QI. 28.02 c. 03. D. greater than 03 Scanned with CamScanner ycles

Answer 1

Solution 1: The relationship between quantity supplied and price is direct and the relationship between quantity demanded and price is inverse.

The correct answer is Option A. direct; inverse

Explanation: The relationship between quantity supplied and price is direct because as the price increases the supply also increases and when the price of a product falls, it's supply gets reduced. This is because suppliers supply less of the product having lower prices and they will supply more of the products having increased prices.

The relationship between quantity demanded and price is inverse because when price increases, people do not purchase the product with increased prices and hence the quantity demanded gets reduced.

On the other hand, as price falls, the demand for that product increases. This relationship is inverse.

Solution 2: An increase in the tax on cigarettes raises the price of cigarettes by shifting the supply curve for cigarettes leftwards.

The correct answer is Option D.

Explanation: Since a tax is imposed on cigarettes the prices of cigarettes are increased, the supply of cigarettes is affected. Now, the suppliers will supply less of the cigarettes a s the tax is imposed on it. The decrease in supply shifts the supply curve to the left and increase in the prices of cigarettes.

Question 3 is not completely visible hence it has not been solved.

New Supply (S) suby (5) Demand (D) quantity (Q)