Assignment 2: Supply and Demand
|
|
- Buddy Baker
- 6 years ago
- Views:
Transcription
1 Assignment 2: Supply and Demand (Reference: Mankiw and Taylor, Chapters 4, 5, 6) Multiple Choice 1. Suppose that a large dairy farmer is able to raise the market price of milk by restricting milk supply to the market. In this case, a. the milk market is perfectly competitive. b. buyers will decrease their demand for milk. c. buyers will increase their demand for milk. d. the milk market is imperfectly competitive. 2. Refer to the figure below. This diagram shows the market for roller skates. Which of the following would cause a move from point A to point B? a. an increase in the price of bicycles b. a decrease in the price of bicycles c. a decrease in consumer incomes d. a popular new movie that convinces teens that skateboards are really cool 3. Suppose that the price elasticity of supply of home cleaners is 1.5. If the price of home cleaners rises 5 per cent, the quantity supplied of home cleaners would a. decline 7.5 per cent. b. rise 7.5 per cent. c. rise 1.5 per cent. d. rise 0.3 per cent. 4.The diagram below shows the supply of oranges per week provided by Farmer Jones. When the price increases from 1.00 per pound to 2.00 per pound, the quantity supplied increases to
2 a. 50. b c d The cross-price elasticity of demand for substitute goods must be a. greater than one. b. less than one. c. zero. d. greater than zero. 6. Refer to the figure below. In this diagram, the price elasticity of supply between points A and B is a. 1.5 b c d. 3.33
3 7. When comparing price elasticities of demand for petrol in the long run and the short run, what can we say about the long-run elasticities? a. Within every price range, the price elasticity of demand for petrol is more elastic in the long run. b. Consumers are less sensitive to changes in the price of petrol in the long run. c. Within every price range, the price elasticity of demand is less elastic in the long run. d. The price elasticity of demand for petrol tends to be unit elastic in the long run. 8. In a market where the government imposes a price control, the extent of the excess demand or excess supply created will be determined by the a. imposed price and the slope of the demand curve. b. imposed price and the slope of the supply curve. c. difference between quantity demanded and quantity supplied at the imposed price. d. difference between the imposed price and the equilibrium price. 9. The government is thinking about increasing the tax on petrol to raise additional revenue rather than to promote conservation. The tax will result in the greatest amount of tax revenue if the price elasticity of demand for petrol equals a. 1.8 b. 1.4 c. 1.0 d Refer to the Figure below. Consider the impact of a tax on sellers, shown in this diagram of the market for whisky. In this case, the total tax revenue collected by the government is a. 3 b c. 13,500 d. 40,500
4 11 Taxes levied directly on consumers a. always hurt consumers rather than producers. b. always hurt producers rather than consumers. c. generate more revenue than taxes levied on producers. d. have the same effect as taxes directly levied on producers. 12 When the minimum wage is set above the equilibrium market wage, a. there will be an excess demand for labour at the minimum wage. b. it will have no effect on the quantity of labour employed. c. the unemployment rate will rise. d. the quality of the labour force will rise. 13 Suppose that the government introduces a price ceiling in the fish market, and that suppliers begin to accept under-the-table payments or bribes from buyers who are anxious to ensure they get the fish they want. The a. excess supply of fish will be eliminated. b. purpose of that price ceiling would be defeated. c. price ceiling must have been too low. d. price of fish set by the price ceiling would rise. 14 A 5 per cent tax is levied on products A and B, both of which have the same price elasticity of demand. Unit sales of A are nearly the same after the tax, while unit sales of B fall dramatically. Which of the following can we conclude? a. Producers of A bear a greater share (relative to consumers) of their market's tax burden than the producers of B. b. Product B has a smaller price elasticity of supply than product A. c. Tax revenue is greater from product A. d. Tax revenue is greater from product B.
5 15. An inferior good is one for which demand: a. rises as income rises. b. falls as income rises. c. is unrelated to income. d. is low because of the low quality of the good. e. is high because the good must be replaced often. Short Answer 1. There is a market with 8 buyers and 8 sellers. Each buyer can buy at most 1 unit, each seller can produce at most 1 unit. Buyer Willingness to Pay Seller Cost a) What is the quantity demanded when price is 50? What is the quantity supplied when price is 50? There is an excess of units when price is 50. b) Compute the equilibrium price and quantity.
6 2. You are given the following data on price/quantity movements for selected commodities: Case I Case II Case III P Q P Q P Q Price is measured in US dollars. In each case: (a) Calculate the percentage change in quantity and percentage change in price, assume that the lower price is the initial price. (b) Assume that demand is linear. Calculate the price elasticity of demand at the lower price and the corresponding quantity. State whether demand at that price is elastic, inelastic, or unit elastic. (c) Calculate the change in total revenue. (d) State the general rule that relates price elasticity of demand to changes in total revenue. Do your findings support that rule? 3. Graph the demand curve Q = 3 1 / 2 P and mark the elastic, unit elastic, and inelastic regions.
Econ 200, Summer 2011, Dr. Alan and Prof. Crossley. Problem Set 2. (Reference: Mankiw and Taylor, Chapters 6, 7, 8, 13)
Multiple Choice Econ 200, Summer 2011, Dr. Alan and Prof. Crossley Problem Set 2 (Reference: Mankiw and Taylor, Chapters 6, 7, 8, 13) 1 Refer to the Figure below. Consider the impact of a tax on sellers,
More informationMultiple Choice questions /60 Problem 1 /20 Problem 2 /20
Econ 200 Summer 2011 Dr. Alan and Prof. Crossley Midterm Solutions ANSWERS IN BOLD Multiple Choice questions /60 Problem 1 /20 Problem 2 /20 Part I: Multiple Choice Questions Instructions: Circle one and
More informationQueen s University Department of Economics ECON 111*S
Queen s University Department of Economics ECON 111*S Take-Home Midterm Examination May 24, 25 Instructor: Sharif F. Khan Suggested Solutions PART A TRUE/FALSE/UNCERTAIN QUESTIONS Explain why each of the
More informationProblem Set 3 Eco 112, Spring 2011 Chapters covered: Ch. 6 and Ch. 7 Due date: March 3, 2011
Problem Set 3 Eco 112, Spring 2011 Chapters covered: Ch. 6 and Ch. 7 Due date: March 3, 2011 There are 30 multiple choice questions in this problem set. Answer these questions by the beginning of the class
More informationECO 2301 Spring EXAM 2 Form 2 Wednesday, April 1 st Solutions
ECO 2301 Spring 2015 Sec 002 Klaus Becker EXAM 2 Form 2 Wednesday, April 1 st Solutions 1. Mathematically, price elasticity of demand is: A. the percentage change in the quantity of a good that is demanded
More informationProblem Set 5. The price will be higher than the equilibrium price. There will be a surplus of cheese.
Problem Set 5 I. 1. The government has decided that the free-market price of cheese is too low. a) Suppose the government imposes a binding price floor in the cheese market. Draw a supply-and-demand diagram
More informationSOLUTIONS TO TEXT PROBLEMS 6
SOLUTIONS TO TEXT PROBLEMS 6 Quick Quizzes 1. A price ceiling is a legal maximum on the price at which a good can be sold. Examples of price ceilings include rent control, price controls on gasoline in
More informationEcon 100, Spring 2014 Exercise Set 5 PART 1: ELASTICITY
Econ 100, Spring 2014 Exercise Set 5 PART 1: ELASTICITY A decrease in supply will cause the largest increase in price when a. both supply and demand are inelastic. b. both supply and demand are elastic.
More informationElasticity and Its Applications
Elasticity and Its Applications 1. In general, elasticity is a. a measure of the competitive nature of a market. b. the friction that develops between buyer and seller in a market. c. a measure of how
More informationEcon 101, section 3, F06 Schroeter Exam #2, Red. Choose the single best answer for each question.
Econ 101, section 3, F06 Schroeter Exam #2, Red Choose the single best answer for each question. 1. Which of the following is consistent with elastic demand? a. A 10% increase in price results in a 5%
More information1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price
1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price 2. The two things needed for demand to exist are: willingness
More informationEconomics E201 (Professor Self) Sample Questions for Exam Two, Fall 2013
, Fall 2013 Your exam will have two parts covering the topics in chapters 4 (page 91 through end of chapter), 5 and 6 from the Parkin chapters and chapter 10 (up to page 317, up to but not including the
More informationMICROECONOMICS Midterm Test (sample)
Student Name:.. MICROECONOMICS Midterm Test (sample) Time: 60 minutes Student Number:. Total Mark:... /50 Class:. Converted Mark:../10 Section A: QUIZ 20 marks Show your answers on the ANSWER SHEET at
More informationPRICING IN COMPETITIVE MARKETS
PRICING IN COMPETITIVE MARKETS Some markets, such as those for agricultural commodities and gasoline, seem to have just one price at any given time. All producers in the market charge the same or very
More informationChapter 19 Demand and Supply Elasticity
Chapter 19 Demand and Supply Elasticity Learning Objectives After you have studied this chapter, you should be able to 1. define price elasticity of demand, elastic demand, unit elastic demand, inelastic
More informationDepartment of Economics University of California, Davis ECONOMICS 1A. Second Midterm Exam Version B
Department of Economics University of California, Davis ECONOMICS 1A Spring 2010 L. Jay Helms Second Midterm Exam Version B Last Name: First Name: Your Student ID Number: Please check your registered section
More informationEXAM 2: Professor Walker - S201 - Fall 2008
EXAM 2: Professor Walker - S201 - Fall 2008 I. (3 Points Each) Multiple Choice 1. Leisure Hours Grades 10 80 15 40 20 20 The tradeoff shown in the PPF table above depicts A. decreasing per unit O.C. of
More informationMidterm 2 Sample Questions. Use the demand curve diagram below to answer the following THREE questions.
! Midterm 2 Sample uestions Use the demand curve diagram below to answer the following THREE questions. 8 6 4 2 4 8 12 16 1. What is the own-price elasticity of demand as price decreases from 6 per unit
More informationMicroeconomics. More Tutorial at
Microeconomics Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. A legal maximum price at which a good can be sold is a price a. floor. b.
More informationECON 251. Exam 1 Pink. Fall 2013
ECON 251 1. By definition, opportunity cost is a. The value of the best alternative b. The sum of the value of all available alternatives c. The amount of money it takes to buy an item d. Always greater
More informationChapter. Demand and Supply CHAPTER IN PERSPECTIVE
Demand and Supply Chapter 4 CHAPTER IN PERSPECTIVE The tools of demand and supply explain how competitive markets work. We use the demand and supply tools to determine the quantities and prices of the
More informationwithin this range? c. Over what range of prices is the demand for motel rooms unit elastic? To
1. Identify the parts of the circular-flow diagram immediately involved in the following transactions. a. Mary buys a car from Jaguar for 40,000. b. Jaguar pays Joe 2,500/month for work on the assembly
More informationUNIT 4 PRACTICE EXAM
UNIT 4 PRACTICE EXAM 1. The prices paid for resources affect A. the money incomes of households in the economy B. the allocation of resources among different firms and industries in the economy C. the
More informationMicroeconomics. Use the graph below to answer question number 3
More Tutorial at Microeconomics 1. Opportunity costs are the values of the: a. minimal budgets of families on welfare b. hidden charges passed on to consumers c. monetary costs of goods and services *
More informationMicroeconomics. Use the graph below to answer question number 3
More Tutorial at Microeconomics 1. Opportunity costs are the values of the: a. minimal budgets of families on welfare b. hidden charges passed on to consumers c. monetary costs of goods and services *
More information1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price
1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price 2. Quantity demanded vs demand: quantity demanded is
More informationChapter 4. Demand, Supply and Markets. These slides supplement the textbook, but should not replace reading the textbook
Chapter 4 Demand, Supply and Markets These slides supplement the textbook, but should not replace reading the textbook 1 What is a market? A group of buyers and sellers with the potential to trade 2 What
More informationDownloaded for free from 1
Micro Chapter 6 -price ceiling or price cap: government regulation that makes it illegal to charge a price higher then a specified level -effects of the price cap on the market depend on whether the ceiling
More informationEastern Mediterranean University Faculty of Business and Economics Department of Economics Fall Semester
Duration: 50 minutes Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2016-17 Fall Semester ECON101 - Introduction to Economics I Quiz 2 Answer Key 16 December
More informationECON 2100 (Summer 2015 Sections 07 & 08) Exam #2C
ECON 21 (Summer 215 Sections 7 & 8) Exam #2C Multiple Choice Questions: (3 points each) 1. I am taking of the exam. C. Version C 2. A Price Control generally refers to A. who bears the burden of a tax,
More informationIntermediate Microeconomics 301 Problem Set # 2 Due Wednesday June 29, 2005
Intermediate Microeconomics 301 Problem Set # 2 Due Wednesday June 29, 2005 1. A new chemical cleaning solution is introduced to the market. Initially, demand is Q D = 100 + 2p p 2 and supply is Q S =
More informationEastern Mediterranean University Faculty of Business and Economics Department of Economics Fall Semester
Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2016-17 Fall Semester Duration: 110 minutes ECON101 - Introduction to Economics I Final Exam Type A 11 January
More informationThis is what we call a demand schedule. It is a table that shows how much consumers are willing and able to purchase at various prices.
Demand Market: an institution or mechanism, which brings together buyers ("demanders") and sellers ("suppliers") of particular goods and services. The remainder of this unit assumes a perfectly competitive
More informationProblem Set 3 21 September 2007
Eco 301 Name Problem Set 3 21 September 2007 1. Suppose that the U.S. demand and supply for soft drinks are given by Q D = 300-2 P Q S = 4 P The price is in cents per can and quantity is in millions of
More informationEconomics 323 Microeconomic Theory Fall 2015
pink=a FIRST EXAM Chapter Two Economics 323 Microeconomic Theory Fall 2015 1. The equilibrium price in a market is the price where a. supply equals demand b. no surpluses or shortages result c. no pressures
More information2013 Pearson. Why did the price of coffee soar in 2010 and 2011?
Why did the price of coffee soar in 2010 and 2011? How do markets work? We have seen the circular flows diagram, which shows that households and firms interact in factor markets and goods markets. In this
More informationExam #3 (75 Points Total)
Exam #3 (75 Points Total) The space provided below each question should be sufficient for your answer, but you can use additional paper if needed. You are encouraged to show your work for partial credit.
More informationBoston College Problem Set 3, Fall 2012 EC Principles of Microeconomics Instructor: Inacio G L Bo
EC 131 - Principles of Microeconomics Instructor: Inacio G L Bo Answer the questions in the spaces provided on the question sheets. If you run out of room for an answer, continue on the back of the page.
More informationGovernment Regulation
Government Regulation What do you think is the market price for renting an apartment in Plainfield? What happens to the quantity of demand and supply after the price change? List four outcomes that would
More informationElasticity and Its Applications. Copyright 2004 South-Western
Elasticity and Its Applications 5 Copyright 2004 South-Western Copyright 2004 South-Western/Thomson Learning Elasticity... allows us to analyze supply and demand with greater precision. is a measure of
More informationAP Econ Section 9 Micro
Name: Date: _ ID: A AP Econ Section 9 Micro Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Gas prices recently increased by 25%. In response, purchases
More informationECON 102 Micro Principles Exercise 2. Multiple Choice Questions. Choose the best answer July 24,2008
1 ECON 102 Micro Principles Exercise 2 Multiple Choice Questions. Choose the best answer July 24,2008 1. When marginal benefit (MB) is greater than marginal cost (MC) A) the economy produces too little
More informationECON 1001 A. Come to the PASS workshop with your mock exam complete. During the workshop you can work with other students to review your work.
It is most beneficial to you to write this mock midterm UNDER EXAM CONDITIONS. This means: Complete the midterm in 1.5 hour(s). Work on your own. Keep your notes and textbook closed. Attempt every question.
More informationECON 101 KONG Midterm 2 CMP Review Session. Presented by Benji Huang
ECON 101 KONG Midterm 2 CMP Review Session Presented by Benji Huang Chapter 5 Efficiency and Equity Benefit, Cost, Surplus Consumers (1) A consumer benefits from the consumption of a product this benefit
More informationECON 101 MIDTERM 1 REVIEW SESSION SOLUTIONS (WINTER 2015) BY BENJI HUANG
ECON 101 MIDTERM 1 REVIEW SESSION SOLUTIONS (WINTER 2015) BY BENJI HUANG TABLE OF CONTENT I. CHAPTER 1: WHAT IS ECONOMICS II. CHAPTER 2: THE ECONOMIC PROBLEM III. CHAPTER 3: DEMAND AND SUPPLY IV. CHAPTER
More informationPPA 723, Spring 2009 Professor John McPeak
Quiz One PPA 723, Spring 2009 Professor John McPeak Name: The total quiz is worth 20 points. Each question is worth 2 points, and each sub question is worth an equal share of the two points. 1) The demand
More information!"#$#%&"'()#*(+,'&$-''(.#/-'((
Lecture 1 Basic Concerns of Economics What is Economics! Economics is the study of how society manages its scarce resources. o Economic Problem: How a society can satisfy unlimited wants with limited resources
More informationAP Microeconomics Review Sample Questions
AP Microeconomics Review Sample Questions Sample Multiple-Choice Questions The following are examples of the kinds of multiple-choice questions found on the examination. The distribution of topics and
More informationExam 01 - ECON Friday, October 1st
Name: Exam 01 - ECON 2301-05 - Friday, October 1st Figure 1 1. Refer to Figure 1. This economy has the ability to produce at which point(s)? a. A, B, D b. A, B c. C, F, G d. A, B, C, F, G 2. Any point
More informationMICROECONOMICS SECTION I. Time - 70 minutes 60 Questions
MICROECONOMICS SECTION I Time - 70 minutes 60 Questions Directions: Each of the questions or incomplete statements below is followed by five suggested answers or completions. Select the one that is best
More informationExam 01 - ECON Friday, October 1st
Name: ID: A Exam 01 - ECON 2301-05 - Friday, October 1st 1. Demand is said to be inelastic if the a. quantity demanded changes proportionately the same as price. b. quantity demanded changes proportionately
More informationPostgraduate Diploma in Marketing December 2017 Examination Economic and Legal Impact (Econ)
Postgraduate Diploma in Marketing December 2017 Examination Economic and Legal Impact (Econ) Date: 20 December 2017 Time: 0830 Hrs 1130 Hrs Duration: Three (03) Hrs ) Total marks for this paper is 100
More information1. Welfare economics is the study of a. the well-being of less fortunate people. b. welfare programs in the United States.
1. Welfare economics is the study of a. the well-being of less fortunate people. b. welfare programs in the United States. c. the effect of income redistribution on work effort. d. how the allocation of
More informationUNIVERSITY OF TORONTO Faculty of Arts and Science APRIL/MAY EXAMINATIONS 2006 ECO 100Y1 Y. Duration: 3 hours
UNIVERSITY OF TORONTO Faculty of Arts and Science APRIL/MAY EXAMINATIONS 2006 ECO 100Y1 Y Duration: 3 hours Examination Aids allowed: Non-programmable calculators only INSTRUCTIONS: Students are required
More informationChapter 3. Applying the Supply-and- Demand Model
Chapter 3 Applying the Supply-and- Demand Model Reading Assignment for Week: Finish Chapter 3 Chapter 9 (sections 9.2, 9.3, 9.4) Chapter 13 (first few pages through section 13.1) 3-2 Topic How the shapes
More informationSupply, demand and government policies. Dr. Anna Kowalska-Pyzalska
Supply, demand and government policies Dr. Anna Kowalska-Pyzalska Price ceiling Price floor Tax incidence In a free, unregulated market system, market forces establish equilibrium prices and exchange quantities.
More informationEXAMINATION 2 VERSION A "Applications of Supply and Demand" October 12, 2016
William M. Boal Signature: Printed name: EXAMINATION 2 VERSION A "Applications of Supply and Demand" October 12, 2016 INSTRUCTIONS: This exam is closed-book, closed-notes. Simple calculators are permitted,
More informationEconomics 323 Microeconomic Theory Fall 2016
pink=a FIRST EXAM Chapter Two Economics 33 Microeconomic Theory Fall 06. The process whereby price directs existing supplies of a product to the users who value it the most is called the function of price.
More informationChoose the single best answer for each question. Do all of your scratch-work in the side and bottom margins of pages.
Econ 101, Sections 3 and 4, S11, Schroeter Exam #2, Special code = 0002 Choose the single best answer for each question. Do all of your scratch-work in the side and bottom margins of pages. 1. The cross-price
More informationEconomics 323 Microeconomic Theory Fall 2016
peach=b FIRST EXAM Chapter Two Economics 33 Microeconomic Theory Fall 06. The process whereby price directs existing supplies of a product to the users who value it the most is called the function of price.
More informationECON 251 Exam 1 Pink Spring 2012
ECON 251 Exam 1 Pink Spring 2012 1. Which of the following is an example of the economic resource of capital? a. A $20 bill b. A corporate bond c. a government savings bond d. none of the above 2. John
More informationDEMAND. Economics Unit 2 Just the Facts Handout
DEMAND Economics Unit 2 Just the Facts Handout What is Demand? A market is a place where people buy and sell things. A market has two sides. There is a buying side and a selling side. The buying side of
More information2007 Thomson South-Western
Elasticity... allows us to analyze supply and demand with greater precision. is a measure of how much buyers and sellers respond to changes in market conditions THE ELASTICITY OF DEMAND The price elasticity
More informationMacro Unit 1b. This is what we call a demand schedule. It is a table that shows how much consumers are willing and able to purchase at various prices.
Macro Unit 1b Demand Market: an institution or mechanism, which brings together buyers ("demanders") and sellers ("suppliers") of particular goods and services. Notice that the remainder of this unit assumes
More informationCoimisiún na Scrúduithe Stáit State Examinations Commission
2010. M.42 WARNING This Question Paper MUST be returned with your answer book(s) at the end of the examination, otherwise marks will be lost. Write your Examination Number here Coimisiún na Scrúduithe
More informationChapter 6 Elasticity: The Responsiveness of Demand and Supply
hapter 6 Elasticity: The Responsiveness of emand and Supply 1 Price elasticity of demand measures: how responsive to price changes suppliers are. how responsive sales are to changes in the price of a related
More informationLECTURE NOTES ON MICROECONOMICS
LECTURE NOTES ON MICROECONOMICS ANALYZING MARKETS WITH BASIC CALCULUS William M. Boal Part 3: Firms and competition Chapter 12: Welfare analysis Problems (12.1) [Pareto improvement, economic efficiency]
More informationSection I (20 questions; 1 mark each)
Foundation Course in Managerial Economics Examination Marks- 100, Time 3 hours Section I (20 questions; 1 mark each) 1. Which of the following statements is not true: a. Rich countries also face problems
More informationFIRST HOURLY EXAMINATION ECON 200 Spring 2009 Version A DAY AND TIME YOUR SECTION MEETS:
FIRST HOURLY EXAMINATION ECON 200 Spring 2009 Version A STUDENT'S NAME: STUDENT'S IDENTIFICATION NUMBER: DAY AND TIME YOUR SECTION MEETS: ENTER THE NUMBER 1555777 UNDER "SPECIAL CODES" ON THE SCANTRON
More informationGovernment Policy, Efficiency, and Welfare
Government Policy, Efficiency, and Welfare Econ 102: Introduction to Microeconomics 1 1.1 Goals of today s class Goals of today s class Learn about consumer surplus and producer surplus, a convenient way
More informationECO401 Current Online 85 Quizzes Question Repeated ignore In Green color are doubted one
ECO401 Current Online 85 Quizzes Question Repeated ignore In Green color are doubted one Question # 1 of 15 ( Start time: 01:24:42 PM ) Total Marks: 1 A person with a diminishing marginal utility of income:
More informationCHAPTER 3 SUPPLY AND DEMAND: AN INITIAL LOOK
CHAPTER 3 SUPPLY AND DEMAND: AN INITIAL LOOK 1. This question is intended to help students develop an intuitive sense of the origins of the demand curve. If you deal with this question in class or discussion
More informationEXAMINATION 2 VERSION B "Applications of Supply and Demand" October 12, 2016
William M. Boal Signature: Printed name: EXAMINATION 2 VERSION B "Applications of Supply and Demand" October 12, 2016 INSTRUCTIONS: This exam is closed-book, closed-notes. Simple calculators are permitted,
More informationChapter 4. Elasticity. In this chapter you will learn to. Price Elasticity of Demand
Chapter 4 Elasticity In this chapter you will learn to 1. Explain the meaning of price elasticity of demand and how it is measured. 2. Describe the relationship between demand elasticity and total expenditure.
More informationSubtleties of the Supply and Demand Model: Price Floors, Price Ceilings, and Elasticity
CHAPTER 4 Subtleties of the Supply and Demand Model: Price Floors, Price Ceilings, and Elasticity CHAPTER OVERVIEW Price elasticity is one of the most useful concepts in economics. It measures the responsiveness
More informationNB: STUDENTS ARE REQUESTED IN THEIR OWN INTEREST TO WRITE LEGIBLY AND IN INK.
1 INFORMATION & INSTRUCTIONS: DURATION: THREE (3) HOURS TOTAL MARKS: 300 INTERNAL EXAMINER : PROFESSOR D. MAHADEA EXTERNAL EXAMINER: MR R. SIMSON NB: STUDENTS ARE REQUESTED IN THEIR OWN INTEREST TO WRITE
More informationAngel International School - Manipay 2 nd Term Examination April Economics. Duration: 2.30 Hours. Part I
Grade 09 Angel International School - Manipay 2 nd Term Examination April. 2018 Economics Duration: 2.30 Hours Index No:- Part I 1) What is meant by opportunity cost? a. The best alternative forgone b.
More informationEcon103_Midterm (Fall 2016)
Econ103_Midterm (Fall 2016) Total 50 Points. Multiple Choice Identify the choice that best completes the statement or answers the question. 1 point for each question. Total 15 pts. c 1. Which of the following
More informationChapter 10 Pure Monopoly
Chapter 10 Pure Monopoly Multiple Choice Questions 1. Pure monopoly means: A. any market in which the demand curve to the firm is downsloping. B. a standardized product being produced by many firms. C.
More informationEcon224_Test02_Review_092710
Name: Class: Date: Econ224_Test02_Review_092710 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. In the housing market, rent control causes a. quantity
More informationINSTITUTE OF RISING STARS
INSTITUTE OF RISING STARS 1/9,Lalita Park, Main Vikas Marg,Laxmi Nagar Chapter 2 Theory of Demand and Supply 1. Which of the following pairs of goods is an example of substitutes? (a) Tea and sugar (b)
More informationMonopolistic Competition. Chapter 17
Monopolistic Competition Chapter 17 The Four Types of Market Structure Number of Firms? Many firms One firm Few firms Differentiated products Type of Products? Identical products Monopoly Oligopoly Monopolistic
More informationEC1000 MICROECONOMICS ' MOCK EXAM
EC1000 MICROECONOMICS ' MOCK EXAM Time Allowed Two Hours (2 Hours) Instructions to candidates This paper is in two sections. Students should attempt ALL the questions in both Sections The maximum mark
More informationSAMPLE FINAL. Part I - Multiple Choice Questions:
Part I - Multiple Choice Questions: SAMPLE FINAL 1. Which of the following is not a characteristic of a perfectly competitive market? a. Firms are price takers. b. Firms have difficulty entering the market.
More informationProfessor Christina Romer SUGGESTED ANSWERS TO PROBLEM SET 2
Economics 2 Spring 2018 rofessor Christina Romer rofessor David Romer SUGGESTED ANSWERS TO ROBLEM SET 2 1.a. In this problem we are dividing everything the household buys into two categories child care
More informationThe price elasticity of demand when price decreases from $9 to $7 is A B C D -1.
Varsity Economics Product Market: Elasticity 1 The price elasticity of demand is a measure of the A effect of changes in demand on the price. B relationship between price and profitability. C responsiveness
More informationAS/ECON AF Answers to Assignment 1 October 2007
AS/ECON 4070 3.0AF Answers to Assignment 1 October 2007 Q1. Find all the efficient allocations in the following 2 person, 2 good, 2 input economy. The 2 goods, food and clothing, are produced using labour
More informationMICRO FINAL EXAM Study Guide
AP MICROECONOMICS-217 Name: MICRO FINAL EXAM Study Guide Instructions: Please fight senioritis! Study & be efficient with your time. DUE: Friday April 28 th (Multiple choice block 4/26 th or 27 th Free
More informationIowa State University Economics 101 Microeconomics Principles Prof. Kilkenny Spring First Exam February 25, 2005
Iowa State University Economics 101 Microeconomics Principles Prof. Kilkenny Spring 2005 First Exam February 25, 2005 General Instructions: 1. Write your name here: 2. USE a #2 PENCIL: Write your name,
More informationNAME: INTERMEDIATE MICROECONOMIC THEORY FALL 2006 ECONOMICS 300/012 Final Exam December 8, 2006
NAME: INTERMEDIATE MICROECONOMIC THEORY FALL 2006 ECONOMICS 300/012 Section I: Multiple Choice (4 points each) Identify the choice that best completes the statement or answers the question. 1. The slope
More informationECON 200. Introduction to Microeconomics
ECON 200. Introduction to Microeconomics Homework 3 Part I Name: [Multiple Choice] 1. A life-saving medicine without any close substitutes will tend to have (a) a. a small elasticity of demand. b. a large
More informationCHAPTER 4, SECTION 1
DAILY LECTURE CHAPTER 4, SECTION 1 Understanding Demand What Is Demand? Demand is the willingness and ability of buyers to purchase different quantities of a good, at different prices, during a specific
More informationExam #3 (100 Points Total)
Exam #3 (100 Points Total) Take the exam during an uninterrupted period of no more than 3 hours. (It should not take that long.) The space provided below each question should be sufficient for your answer,
More informationJanuary Examinations 2014
January Examinations 2014 DO NOT OPEN THE QUESTION PAPER UNTIL INSTRUCTED TO DO SO BY THE CHIEF INVIGILATOR Department Module Code Module Title Exam Duration (in words) Economics Microeconomics Two hours
More informationMidterm 1 60 minutes Econ 1101: Principles of Microeconomics October 8, Exam Form A
Midterm 1 60 minutes Econ 1101: Principles of Microeconomics October 8, 2012 Exam Form A Name Student ID number Signature Teaching Assistant Section The answer form (the bubble sheet) and this question
More informationJANUARY EXAMINATIONS 2005
No. of Pages: (A) 7 No. of Questions: 26 EC1000A ' JANUARY EXAMINATIONS 2005 Subject Title of Paper ECONOMICS EC1000 MICROECONOMICS Time Allowed Two Hours (2 Hours) Instructions to candidates This paper
More informationEcon 101, sections 2 and 6, S06 Schroeter Exam #2, Red. Choose the single best answer for each question.
Econ 101, sections 2 and 6, S06 Schroeter Exam #2, Red Choose the single best answer for each question. 1. If the own-price elasticity of demand for a good is -2.0, this implies that consumers would a.
More informationEC155e mid term of March 5, 2014 SOLUTIONS
EC155e mid term of March 5, 2014 SOLUTIONS Question 1 Define four of the following terms. (No extra credit for answering all five.) See the definitions in our textbook. A few additional notes here: 1)
More informationChapter 2 Supply and Demand
Managerial Economics and Strategy 2nd Edition Perloff SOLUTIONS MANUAL Full download at: https://testbankreal.com/download/managerial-economics-and-strategy- 2nd-edition-perloff-solutions-manual/ Chapter
More informationChapter 3 Elasticity.notebook. February 03, Chapter 3: Competitive Dynamics and Government (Elasticity and Related Concepts)
Chapter 3: Competitive Dynamics and Government (Elasticity and Related Concepts) price elasticity of demand the responsiveness of a product's quantity demanded to a change in its price. Degree of Elasticity
More information