Consumers will have the highest net gain as a result of a price ceiling when Select one: OA. demand is inelastic and supply is elastic. OB. demand is inelastic and supply is inelastic. C. demand is elastic and supply is inelastic. OD. demand is elastic and supply is elastic. 0 of of 44 Suppose that Egypt and the EU can only trade in cotton and wheat. Egyptian economy is smaller than that of the EU. The opportunity cost of 1 yard of cotton is 0.8 kg of wheat in Egypt. The world price of 1 yard of cotton is 0.9 kg of wheat If there are no obstacles to trade, all markets are perfectly competitive and transportation is costless, then most likely in the long run Select one: OA Egypt will export wheat and import cotton . Egypt will import both cotton and wheat. . . Egypt will export both cotton and wheat. OD Egypt will export cotton and import wheat. Jnsure Prev Page 5. 7 8 9 10 11 12 13 14 Finish att Next Page The downward sloping part of the labour supply curve of a single worker can be explained by the fact that Select one: there is only income effect as wage rate changes. OB. there is only substitution effect as wage rate changes. OC. substitution effect is greater than the income effect as wage rate changes. OD. income effect is greater than the substitution effect as wage rate changes. Prev Page 6 7 8 9 10 11 12 13 14 15 Next Page 44 If the risk-free rate increases, while everything else stays the same, then Select one: the budget line of the portfolio parallelly moves up. OB. the budget line of the portfolio does not change. Oc. the budget line of the portfolio becomes steeper. OD the budget line of the portfolio becomes flatter. Prev Page 7 8 9 10 11 12 13 14 4 15 16 No