Choose the correct answer and explain why the answer is correct

5. If the equation of demand curve is Q = 8 - 2P, then at price P = 1 the demand is a) elastic By inelastic c) unit elastic d) none of the above 6. Suppose someone believes that if a per-unit tax is placed on the producers of good Y, the producers of good Y will end up paying the full tax. This person assumes that the demand curve for good Y is Ca) elastic b) perfectly inelastic c) inelastic d) perfectly elastic 7. Price Quantity $ 2 26 4 22 18 8 14 10 10 Demand is most elastic between a) $2 and $4 b) $4 and $6 c) $6 and $8 d) $8 and $10 8. If the demand for a good is perfectly inelastic, then a) the percentage change in quantity demanded is greater than the percentage change in price. b) the percentage change in quantity demanded is less than the percentage change in price. c) the percentage change in quantity demanded is equal to the percentage change in price. d) quantity demanded is extremely responsive to changes in price. (e) quantity demanded is not responsive to changes in price