Part I: Understanding the Basics of Microeconomics. ( Fill the blank with “Yes”

Question

Part I: Understanding the Basics of Microeconomics.

(Fill the blank with “Yes” or “No”; 2 * 5 = 10 Points)

1. The law of demand simply states that the lower the price of a product, the less amount that consumers are willing to buy. (      )

2. A decrease in the price of lamb will shift in the demand curve for steak. (      )

3. An increase in wages paid to coal miners will shift out the supply curve for coal. (     )

4. Economic tax incidence depends on the relative slopes of the supply and demand curves. Specifically, the greater share of the economic tax incidence falls on the less inelastic party. (    )

5. The price elasticity of demand, , means a 10% increase in price leads to an % change in quantity demanded. (     )

Explanation / Answer

Question 1). Answer :- No.

Question 2). Answer :- Yes.

Question 3). Answer :- No.

Question 4). Answer :- Yes.

Question 5). Answer :- No.

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