Statement 1: The implementation of effective transportation solutions will enhance the flow of vehicles and improve accessibility on campus. Statement 2: People in this area need access to affordable housing options to ensure a more inclusive and equitable community. Which of the following best describes the two statements above? a. Both statements are normative. b. Statement 1 is positive and Statement 2 is normative. 0. Both statements are positive. d. Statement 1 is normative and Statement 2 is positive. A friend of mine just told me, "The fact that cross-price elasticity of demand for sport shoes and socks is negative means that people often buy sport shoes and socks together." Is my friend correct? He is ALMOST right, but we don't pay attention to the sign for cross-price elasticity. He is correct. 0. He is wrong because the crossprice elasticity of demand for complements should be positive. d. He is wrong because cross-price elasticity of demand measures whether one of the goods is inferior related to the other good. \fWhen the demand for a good is inelastic, raising the price of the good by 25% will a. reduce the total revenue of the firm by less than 25%. b. reduce the total revenue of the firm by more than 25%. c. have no effect on the total revenue of the firm. d. increase the total revenue of the firm. Which of the following would increase the supply of laptops? a. An increase in the price of the metals used to produce the laptops. b. A reduction in the price of laptops. 0. Higher wage rates for the workers that produce the laptops. d. A technological improvement that lowers the cost of production. According to the law of demand, Melinda is willing to buy more cupcakes when its price increases from $4 to $6. Select one: True False A minimum wage that is set above the equilibrium price is an example of a binding price floor. Select one: True False A good that takes a long time to produce would likely have relatively elastic supply. Select one: True False Diminishing marginal utility is a term referring to the fact that for many goods, as the level of production increases, the average cost of producing each individual unit declines. Select one: True False Suppose that you want to buy t-shirts and trousers only in fixed proportion: you prefer to buy 1 trouser with 3 t-shirts. {2 trousers, 7 t-shirts} is going to give you higher utility than your initial bundle of {1 trousers, 3 t-shirts}. Select one: True False