The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from S0 to S1 The quantity of ice cream consumed before the tax is ________ gallons and the quantity consumed after the tax is ________ gallons.

In the shortrun (specific factors) model, FDI will cause _______________ in the return to capital and land and _______________ in the return to labor in the recipient country.

a. an increase; a decrease b. a decrease; an increase c. no change; an increase d. a decrease; no change

If students' expenditures on airline travel increase as a consequence of more heavily discounted fares, students' demand for airline travel must be

A) income elastic. B) income inelastic. C) price elastic. D) price inelastic.