I am not sure whether these questions are true or false:

1. Surpluses of dairy products that have regulated prices usually occur because the demand is price inelastic.

2. You observe that a linear demand curve shifts to the right, this means that the price elasticity of demand will be lower at easch price on the new demand curve than it was on the old demand curve at the same price.

3. New airport will be built by putting 8 dollar levy on domestic fares. If we think of the levy as a tax, it is likely that the burden of levy will be borne mainly by airline passengers subjected to levy.

Thank you in advance for helping.

1. false

2. false
3. probably true, it depends on the relative elasticities of supply and demand.

To determine whether each statement is true or false, we'll need to analyze each question individually.

1. Surpluses of dairy products that have regulated prices usually occur because the demand is price inelastic.

This statement suggests that surpluses of dairy products occur because the demand for these products is price inelastic. To determine if this statement is true or false, you would first need to understand the concept of price elasticity of demand. Price elasticity of demand measures how responsive the quantity demanded of a good is to changes in its price.

To answer this question, you would need to investigate the relationship between regulated prices, price elasticity of demand, and the occurrence of surpluses of dairy products. You can begin by examining various sources, such as economic articles or research papers, that discuss the relationship between price regulation and the occurrence of surpluses in the dairy industry. Based on the research findings, you can determine if the statement is true or false.

2. You observe that a linear demand curve shifts to the right; this means that the price elasticity of demand will be lower at each price on the new demand curve than it was on the old demand curve at the same price.

This statement is discussing the relationship between a shift in a demand curve and the price elasticity of demand. To determine if this statement is true or false, you need to understand the concept of price elasticity of demand and the relationship between demand curve shifts and elasticity.

To find the answer, you can refer to economics textbooks or online resources that explain the relationship between demand curve shifts and price elasticity of demand. By analyzing the literature, you will be able to determine if the statement is true (indicating a negative relationship between shifts and elasticity) or false (indicating no relationship or a positive relationship).

3. A new airport will be built by putting an $8 levy on domestic fares. If we think of the levy as a tax, it is likely that the burden of the levy will be borne mainly by airline passengers subjected to the levy.

This statement discusses the burden of a levy on airline passengers and whether it is likely that they will bear the majority of the burden. To determine if this statement is true or false, you would need to understand the concept of tax incidence and how it applies to levies or taxes on specific goods or services.

To find the answer, you can refer to economic theories or models that discuss tax incidence and its implications. Additionally, you can examine empirical studies or real-world examples that analyze the effects of similar levies or taxes on specific industries. By reviewing these sources, you can determine if the statement is true (indicating that passengers are likely to bear the burden) or false (indicating that other parties, such as airlines, may bear a significant portion of the burden).

Remember, analyzing each statement requires understanding the underlying economic concepts and conducting research to support your conclusion.