Consider the following statements about income elasticity 1. For inferior goods, income elasticity is negative 2. For necessity goods, income elasticity is between 0 and 1 3. When income elasticity for a good is greater than 1, the share of income spent on the good is higher with higher income Which of the above statements about income elasticity are true?

What is the total surplus from this subsidy?

What is the producer surplus after the subsidy

Consider the the market depicted below. Suppose the Government imposes a subsidy of $4 per unit in this market. 

Consider the widget industry. Suppose the price of an input increases, and as a consequence, Qwidget decreases while Pwidget remains unchanged. Which of the following is a possible explanation for why this happened?

Consumer surplus under the $4 tax is

A new kind of consumption good, the “smidget” is invented in Econland. Suppose the impact of the invention on the widget market is that the price Pwidget increases while the quantity Qwidget remains unchanged. A possible explanation for why this happened is that widgets and smidgets are ____ and the supply curve for widgets is ___

What price clears the market?

What would be the government expenditure of a price floor program?

Prior to assisting your client to transition from sit ot stand you notice that they position their feet away from the legs of the chair (making the angle of the knee greater than 90 degrees).  What occurs in your client’s pelvis when they place their feet in this position?