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Question 3: (1 mark). Suppose a producer sells 1000 units of a product at $5 per unit one year, 2000 units at $8 the next year, and 3000 units at $10 the third year. Is this evidence that the law of demand is violated? Explain. Question 4: (2 marks) Evaluate how the following situations will affect the demand curve for iPods. (a) Income statistics show that income of 18-25-year-olds have increased by 10 percent over the last year. (b) Efforts of music artists wanting greater protection of their music result in more stringent enforcement of copyrights and the shutdown of numerous illegal downloading sites. (c) Believing that it has significant control of the market for portable digital music players, Apple decides to raise the price of iPods with the goal of increasing profits. (d) The price of movie tickets decreases. Question 5: (1 mark). The following data shows the relationship between price and quantity demanded at four different prices for a product: P = $11, Q = 16 P = $9, Q = 24 P = $7, Q, = 32 Using the midpoint formula (ARC method), what is the price elasticity of demand between: (a) $11 and $9; (b) $9 and $7. Question 6: (1 mark). Use diminishing marginal utility to explain why millionaires often do not have many homes, even if they can afford it. Question 7: (1 mark) A gasoline station very near a professional football stadium parks car on its lot to make money on game days. Last year it charged $4.00 per car and parked 1000 cars. This year it raised the parking price to $5.00 and parked 850 cars. Did the station owner make a good economic decision in raising the parking prices from one year to the next? Explain. Question 8: (1 mark). Can marginal utility be negative? Briefly explain with an example