Answer multiple choice questions

Q18: Consider a person with the utility function U(A, B) = A1/3B1/9 m where A and B are different consumption goods. If the price of A increases by 2 times, by how much the consumption of B will change? A) It will increase, by 4 times B) It will increase by 3 times C) It will increase by 2 times D) It will increase by 1.5 times E) It will not change Q19: if a 10% wage increase results in a 20% decrease in employment, the labor demand is A) Perfectly elastic B) Elastic, but not perfectly elastic C) Unit elastic D) Inelastic, but not perfectly inelastic E) Perfectly inelastic Q20: If the demand for product X increases with disposable income, then X is A) A normal good B) An inferior good C) A Giffen good D) Produced by firms in competitive industry E) Produced by a monopoly