Question

(A)

Suppose there are a rash of pesticide poisonings that make it clear that the chemicals get through the porous skin, while at the same time a banana blight means that the entire crop of regular bananas meant to ship to the U.S. is destroyed for the foreseeable future. As a result, what will happen in the U.S. market for banana?

Group of answer choices

The demand will rise, and the supply will increase too

The equilibrium market price is indeterminate, but the equilibrium quantity will rise.

The demand will fall, and the supply will fall too

The equilibrium market price will rise, and the equilibrium quantity is indeterminate.

(B)

If a tax is imposed on sellers, the equilibrium price will ________ and the equilibrium quantity will ________.

Group of answer choices

remain the same; decrease

increase; decrease

increase; increase

remain the same; increase

(C) If the price of a scooter increases by 20 percent and the quantity supplied of scooters increases by 30 percent, then supply is

Group of answer choices

inelastic and the elasticity of supply equals 0.66.

elastic and the elasticity of supply equals 0.66.

elastic and the elasticity of supply equals 1.5.

inelastic and the elasticity of supply equals 1.5.

Answer 1

If a tax is imposed on sellers, the equilibrium price will ________ and the equilibrium quantity will ________.

increase; decrease

The tax will lead to higher prices. AS a result of downward sloping demand curve, equilbrium quantity will fall.

f the price of a scooter increases by 20 percent and the quantity supplied of scooters increases by 30 percent, then supply is

elastic and the elasticity of supply equals 1.5.

Elasticity = 30/20 = 1.5

Please post remaining question separately.