Assume that bread and butter are complementary goods. The government begins to subsidize the production of wheat, which is an input in the production of bread. a. For each of the following markets, draw correctly labeled supply and demand graphs and show the effect of the subsidy on the equilibrium price and quantity in the short run. i. The wheat market ii. The bread market iii. The butter market b. If the demand for bread is price elastic, how will total revenues for the bread producers change as a result of the government subsidy?

Demand for face masks at a small newsstand outside an airport is less elastic than demand inside the airport if _______. Select one: a. people prefer not to wear face masks. b. specific brands of face mask don't work as well. c. there are fewer substitutes at the stores inside the airport d. face masks are required to enter the airport.

For the demand schedule shown below, what is the price elasticity of demand? Price Quantity Demanded $74 2,500 $80 1,800

In order to reduce farm output, raise farm prices, and thus raise farm incomes (revenues), the government pays farmers to set aside a portion of their land from production. Using a graph, explain in terms of the elasticity of demand for farm products why farmers may be better-off when harvests are low even if we ignore the money they receive from the set-aside program.