Part II: Multiple Choice Questions (2 points/question) Choose the answer you think is best for each of the following questions by putting an "X" between the parentheses.19. The initial budget equation for books (number of books Q ) and movies (QF) is Q1 = 100 - 5QF, and the price of the book Pr is $5. When the price of the book decreases to $10, what is the new budget equation? a. Q1 =25 - 2QF b. Q1 = 50 -4QF c. QI = 50 -5QF d. Qz = 100 - 5QF e. None of these answers. Answer: [ ] 20. Good X has an income elasticity of -2.50. This implies that this good is: a. a normal good. b. a basic necessity. c. an inferior good. d. a luxury good. e. a good Giffen.21. In 8 hours of work, Andre can produce 24 loaves of bread or 3 kilograms of butter. Robert= on the other hand= can produce 8 loaves or S kilograms of butter. This means that: a. e. the opportunity cost of bread is lower for Andre. but that of butter is the same for Andre and Robert. the opportunity cost of butter and bread is lower for Andre. the opportunity cost of bread is lower for Andre and that of butter is lower for Robert. the opportunity cost of butter is lower for Andre and that of bread is lower for Robert. the opportunity cost of butter and bread is higher for Andre Answer: [ ] I'd t'd seas-re There is excess supply when: the current price is lower than the equilibrium price. the price is such that the quantities demanded and supplied are equal. there is no more rarity. new companies are entering the market. the current price is higher than the equilibrium price. Answer: [ ]