Part II: Multiple Choice Questions (2 pointstquestion} Choose the answer you think is best for each of the following questions by putting an \"X\" between the parentheses. ll. If a 5% drop in price increases the quantity demanded by 7%. the price elasticity of demand is equal to: a. 0.5 b. 0.3 c. 1.0 d. 1.2 e. [.4 Answer: [ ] 12. 'Which of these products must have the least elastic demand with respect to price? a. Milk. b. Vachette brand milk. :3. Cowhide brand milk in Regina. d. Vachette brand milk at the Roger Belanger Lte grocery store e. All of these products have the same elasticity of demand. Answer: [ ] 13. If an increase in the supply of good A lowers the price of good B, then the demands of A and B are independent of each other. the elasticity of supply of good A is greater than 1. A and B are undoubtedly complementary. A and B are presumably substitutes. sass-fa the elasticity of demand for good A is greater than 1. Answer: [ ] 14. Rent controls often cause housing shortages. In the presence of rent control. what mechanism can then restore the balance\"? A decrease in the cost of prospecting activities An increase in rents A promotional offensive on the part of owners of rentcontrolled housing 51-957?" A relaxation of rental conditions which encourages tenants to rent rentcontrolled housing e. The black market