I am not sure whether these questions are true or false:
1. Surpluses of dairy products that have regulated prices usually occur because the demand is price inelastic.
2. You observe that a linear demand curve shifts to the right, this means that the price elasticity of demand will be lower at easch price on the new demand curve than it was on the old demand curve at the same price.
3. New airport will be built by putting 8 dollar levy on domestic fares. If we think of the levy as a tax, it is likely that the burden of levy will be borne mainly by airline passengers subjected to levy.
Thank you in advance for helping.
Microeconomics - SraJMcGin, Thursday, April 9, 2009 at 9:37am
Here are some links you might like to have:
Microeconomics - economyst, Thursday, April 9, 2009 at 9:46am
3. probably true, it depends on the relative elasticities of supply and demand.