Question

1.

In the last few years, California raised taxes on businesses. In addition, the cost of labor has increased due to increases in the minimum wage. Based on this information, you would expect a decrease in supply.

Group of answer choices

True

False

2.

Assuming nothing else changes, when the cost of an input decreases, a firm’s per-unit profit _______ and the firm will offer _______ amounts for sale at every price.

Group of answer choices

decreases, increased

decreases, decreased

increases, increased

increases, decreased

3.

Which of the following explains why the Ford Motor Company decided to focus on producing trucks and sport utility vehicles (SUVs) instead of automobiles?

Group of answer choices

The cost of inputs used in making trucks increased.

There was a decline in productivity in the factories making trucks and SUVs.

The price of a substitute in production decreased.

The government increased tax rates on Ford

4.

An employee of Amazon observes that when consumer income increases by 3%, the quantity demanded for a beauty products item decreases by 1.2%. The income elasticity of demand for this item is _______ and the good is a(n) _______ good.

Group of answer choices

2.5, normal

3.6, normal

–2.5 inferior

0.4, normal

–0.4, inferior

5.

FuboTV and hulu are two streaming services companies that many consumers are using to eliminate expensive cable-TV services. They offer similar benefits to customers. If the price of the FuboTV service decreases, this will cause a decrease in the _______ for the hulu brand streaming service which would be graphed as _______.

Group of answer choices

quantity demanded, movement up/left along its demand curve

demand, leftward shift of its demand curve

quantity demanded, leftward shift of its demand curve

demand, movement up/left along its demand curve

Thanks for the help will leave a like :)

Answer 1

1. A rise in minimum wage reduces demand and increases supply.

answer-false

2. When the cost of an input decreases, the marginal cost of production falls, the profit per unit rises and the supply rises.

answer-increases, increased

3. the government increase taxes which increased the cost of producing automobiles.

answer-last option

4.income elasticity=change in quanity demanded/change in income

income elasticity =-1.2/3

income elasticity =-0.4

the good is an inferior good as quanity demanded falls with rise in income.

answer-last option