Multiple choice question (a) Consider a good whose own price elasticity of demand is -0.5 and price elasticity of supply is 1.5. The fraction of a specific tax that will be passed through to consumers is? (Please provide the explanation)

Select on of these as an answer:

a. 0

b. 1

c. 0.25

d. 0.5

e. 0.75

Multiple choice question (b) In the figure below (please, see, it is attached below), if a minimum wage of $12 per hour has been imposed and the labor demand curve then shifts fromD0toD1the wage rate ________ and the amount of employment ________.

Select on of these answers to fill the gap:

a. falls; increases

b. does not change; decreases

c. falls; decreases

d. does not change; increases

Wage rate (dollars per hour) 14 12 10 D1 Do 0 10 20 30 40 50 60 Quantity (millions of hours per year)