Question: Step by step explanations please, any graphs , formulas , definitions Q6. Lena spends all her income on rice and beans, and her demand for

Step by step explanations please, any graphs , formulas , definitions

Step by step explanations please, any graphs , formulas , definitions Q6.Lena spends all her income on rice and beans, and her demand

Q6. Lena spends all her income on rice and beans, and her demand for each is characterised by downward-sloping demand curves. Her demand curve for beans is elastic. Which of the following statements must be true? If the price of beans rises, she consumes more beans. ii . If the price of beans rises, she consumes more rice. iii. If the price of beans rises, her total spending on beans goes up. iv . If the price of beans rises, her total spending on rice goes up.Q7. Suppose the US government is looking to restrict imports of Canadian steel, and they are deciding between two policies. 0 The first policy would involve getting the Canadians to agree to a \"voluntary export quota" which will reduce the quantity of steel that Canada exports to the US. 0 The second policy would be a tariff on steel which is set at such a level that it reduces Canadian steel exports to the US to the same level being contemplated under the quota

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