1)A new per unit subsidy for almond production in the United States increases the world supply of almonds

1)A new per unit subsidy for almond production in the United States increases the world supply of almonds. If the demand for almonds is inelastic, what will happen to total revenues from almond production?

A.) They will rise.

B.) They will fall.

C.) They will remain the same.

D.) They will change in an indeterminate direction.

2. If the price of Good Y falls from $10 to $8, and the quantity supplied of it falls from 1,000 units to 600 units, the price elasticity of supply is:

A.) 2.67

B.)-2.67

C.) 2.25

D.) -2.25

3. Good X and Good Y are related goods. When the price of Good X rises by 20 percent, the quantity demanded for Good Y falls by 40 percent. What is the cross-price elasticity?

A.) 2

B.) 4

C.) -0.5

D.) -2