Consider the following conditions that may or may not apply…

Consider the following conditions that may or may not apply about a market: (1) Demand for the good is elastic. (2) The market structure is perfect competition. (3) Consumers and producers split the surplus equally. (4) There are no externalities in the market. The First Welfare Theorem states that the unregulated market is Pareto efficient if which of the conditions above holds?

Suppose that when income decreases from $800 to $400 a month…

Suppose that when income decreases from $800 to $400 a month, the quantity demanded for take outs dinners decreases from good 15 units to 10 meals a month. Which of the following statements can we make given this information? (Use the midpoint method to perform any computations you deemed necessary.)i. The good is a normal good.ii. The good is income inelastic.iii. The good is a necessity good.

Which of the following statements about income elasticity of…

Which of the following statements about income elasticity of demand is/are TRUE? i. Normal goods always have a positive income elasticity of demand.ii. When the income elasticity of demand for a good is greater than 1, an increase in the level of income leads to an increase in the share of income spent on the good.iii. Inferior goods have an income elasticity of demand between 0 and 1.