True, False, or Uncertain [20 marks - 5 marks each] Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important. Al-l. Since demand curves are downward sloping, we would never see an increase in price accompanied by an increase in the equilibrium quantity traded in a market. A1-2. An increase in consumer incomes will lead to an increase in the prices of all grocery store items. A1-3. Theoretically, taxes on the sales of sugary soft drinks are perfect; they reduce consumption dramatically and raise a lot of revenue. [Hint Assume a per-unit tax and a horizontal supply curve for soft drinks]