Question 1

The price for tickets of a sold-out event increase by 30% but quantity sold remains unchanged.The price elasticity of demand equals

Accepted Answer

A)  0. 
B)  1. 
C)  infinity. 
D)  Cannot be determined. 
A)  0. 
B)  1. 
C)  infinity. 
D)  Cannot be determined.

Question 2

If the demand for orange juice is expressed as Q = 2000 - 500p,where Q is measured in gallons and p is measured in dollars,then at the price of $3,the demand curve

Accepted Answer

A)  is elastic. 
B)  has a unitary elasticity. 
C)  is inelastic. 
D)  is perfectly inelastic. 
A)  is elastic. 
B)  has a unitary elasticity. 
C)  is inelastic. 
D)  is perfectly inelastic.

Question 3

Suppose the demand curve is perfectly inelastic and the supply curve is upward sloping.The price sellers receive after a specific tax is imposed on sellers

Accepted Answer

A)  is less than before the tax. 
B)  is higher than before the tax. 
C)  is unchanged. 
D)  depends on the supply elasticity. 
A)  is less than before the tax. 
B)  is higher than before the tax. 
C)  is unchanged. 
D)  depends on the supply elasticity.

Question 4

The market demand for wheat is Q = 100 - 2p + 1pb + 2Y.If the price of wheat,p,is $2,and the price of barley,pb,is $3,and income,Y,is $1000,the income elasticity of wheat is

Accepted Answer

A)  2 ∗ (1000/2099). 
B)  2. 
C)  1/2 ∗ (1000/2099). 
D)  cannot be calculated from the information provided. 
A)  2 ∗ (1000/2099). 
B)  2. 
C)  1/2 ∗ (1000/2099). 
D)  cannot be calculated from the information provided.

Question 5

The demand curve for Widgets is given by QD = 6000 - 2y - 200p + 30pG,where QD is the quantity of widgets demanded,y is the per capital income and pG is the price of Gizmos.Compute the partial derivatives with respect to y and pG.

Accepted Answer

-2 and +30

Question 6

Suppose the market demand curve for pizza can be expressed as QD = 100 - 2P + 3Pb,where QD is the quantity of pizza demanded,P is the price of a pizza,and Pb is the price of a burrito.What is the slope of this demand function,and what information does the slope provide?

Accepted Answer

The slope is -2.The slope tells us how a

Question 7

For the following, please answer "True" or "False" and explain why.
-As the supply curve shifts to the right,the increase in quantity demanded will not depend on the shape of the demand curve.

Accepted Answer

A) True 
 B)False

Question 8

A specific tax on sellers will

Accepted Answer

A)  shift the demand curve to the right. 
B)  shift the demand curve to the left. 
C)  shift the supply curve to the right. 
D)  shift the supply curve to the left. 
A)  shift the demand curve to the right. 
B)  shift the demand curve to the left. 
C)  shift the supply curve to the right. 
D)  shift the supply curve to the left.

Question 9

It is appropriate to use the supply-and demand-model if,in a market,

Accepted Answer

A)  everyone is a price taker with full information about the price and quality of the good. 
B)  firms sell identical products. 
C)  costs of trading are low. 
D)  All of the above. 
A)  everyone is a price taker with full information about the price and quality of the good. 
B)  firms sell identical products. 
C)  costs of trading are low. 
D)  All of the above.

Question 10

The vertical distance of the shift in supply from a specific tax of t amount on producers will

Accepted Answer

A)  equal t. 
B)  be less than t. 
C)  depend on the elasticity of supply. 
D)  depend on the incidence of the tax. 
A)  equal t. 
B)  be less than t. 
C)  depend on the elasticity of supply. 
D)  depend on the incidence of the tax.

Question 11

-The above figure shows three different supply-and-demand graphs.Which graph best represents the market for vacations on Mars?

Accepted Answer

A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  None of the above. 
A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  None of the above.

Question 12

An increase in the demand curve for orange juice would be illustrated as a

Accepted Answer

A)  leftward shift of the demand curve. 
B)  rightward shift of the demand curve. 
C)  movement up along the demand curve. 
D)  movement down along the demand curve. 
A)  leftward shift of the demand curve. 
B)  rightward shift of the demand curve. 
C)  movement up along the demand curve. 
D)  movement down along the demand curve.

Question 13

-The above figure shows a graph of a market for pizzas in a large town.At a price of $7,what is the amount of excess demand?

Accepted Answer

A)  0; there is excess supply at $7. 
B)  20 units 
C)  30 units 
D)  10 units 
A)  0; there is excess supply at $7. 
B)  20 units 
C)  30 units 
D)  10 units

Question 14

When it comes to the supply curve of janitors and accountants,

Accepted Answer

A)  the supply curve of janitors is more elastic. 
B)  the supply curve of accountants is more elastic. 
C)  both supply curves are equally elastic. 
D)  More information is needed. 
A)  the supply curve of janitors is more elastic. 
B)  the supply curve of accountants is more elastic. 
C)  both supply curves are equally elastic. 
D)  More information is needed.

Question 15

A vertical supply curve exhibits

Accepted Answer

A)  a constant elasticity of supply. 
B)  a perfectly inelastic supply curve. 
C)  Both A and B are true. 
D)  None of the above. 
A)  a constant elasticity of supply. 
B)  a perfectly inelastic supply curve. 
C)  Both A and B are true. 
D)  None of the above.

Question 16

Suppose the market for corn is given by the following equations for supply and demand:
QS = 2p − 2
QD = 13 − p
where Q is the quantity in millions of bushels per year and p is the price.
a.Calculate the equilibrium price and quantity.Sketch the supply and demand curves on a graph indicating the equilibrium.
b.If a price floor is imposed at $7 per bushel,will there be a surplus or a shortage? What is the quantity of excess supply or demand that results? Draw a graph to show this.

Accepted Answer

a.2p - 2 = 13 - p    p* =

Question 17

Suppose the demand curve for movie tickets has unitary price elasticity and the supply curve is perfectly price elastic.If 3 million tickets are currently sold at a price of $5,approximately how much tax revenue could the government generate from a $1 specific tax?

Accepted Answer

A)  $18 million 
B)  $3 million 
C)  $2.5 million 
D)  $1.5 million 
A)  $18 million 
B)  $3 million 
C)  $2.5 million 
D)  $1.5 million

Question 18

If the demand for oranges is written as Q = 100 - 5p,then the inverse demand function is

Accepted Answer

A)  Q = 5p - 100. 
B)  Q = 20 - .2p. 
C)  p = 20 - 5Q. 
D)  p = 20 - .2Q. 
A)  Q = 5p - 100. 
B)  Q = 20 - .2p. 
C)  p = 20 - 5Q. 
D)  p = 20 - .2Q.

Question 19

When import restrictions are placed on a good,and as a result the price of the good increases,the demand curve for that good will

Accepted Answer

A)  shift rightward. 
B)  shift leftward. 
C)  become steeper. 
D)  be unaffected. 
A)  shift rightward. 
B)  shift leftward. 
C)  become steeper. 
D)  be unaffected.

Question 20

An increase in the price of pork will lead to

Accepted Answer

A)  a movement up along the demand curve. 
B)  a movement down along the demand curve. 
C)  a rightward shift of the demand curve. 
D)  a leftward shift of the demand curve. 
A)  a movement up along the demand curve. 
B)  a movement down along the demand curve. 
C)  a rightward shift of the demand curve. 
D)  a leftward shift of the demand curve.

The price for tickets of a sold-out event increase by 30% but quantity sold remains unchanged.The price elasticity of demand equals

If the demand for orange juice is expressed as Q = 2000 - 500p,where Q is measured in gallons and p is measured in dollars,then at the price of $3,the demand curve

Suppose the demand curve is perfectly inelastic and the supply curve is upward sloping.The price sellers receive after a specific tax is imposed on sellers

The market demand for wheat is Q = 100 - 2p + 1pb + 2Y.If the price of wheat,p,is $2,and the price of barley,pb,is $3,and income,Y,is $1000,the income elasticity of wheat is

The demand curve for Widgets is given by QD = 6000 - 2y - 200p + 30pG,where QD is the quantity of widgets demanded,y is the per capital income and pG is the price of Gizmos.Compute the partial derivatives with respect to y and pG.

Suppose the market demand curve for pizza can be expressed as QD = 100 - 2P + 3Pb,where QD is the quantity of pizza demanded,P is the price of a pizza,and Pb is the price of a burrito.What is the slope of this demand function,and what information does the slope provide?

For the following, please answer "True" or "False" and explain why. -As the supply curve shifts to the right,the increase in quantity demanded will not depend on the shape of the demand curve.

A specific tax on sellers will

It is appropriate to use the supply-and demand-model if,in a market,

The vertical distance of the shift in supply from a specific tax of t amount on producers will

-The above figure shows three different supply-and-demand graphs.Which graph best represents the market for vacations on Mars?

An increase in the demand curve for orange juice would be illustrated as a

-The above figure shows a graph of a market for pizzas in a large town.At a price of $7,what is the amount of excess demand?

When it comes to the supply curve of janitors and accountants,

A vertical supply curve exhibits

Suppose the demand curve for movie tickets has unitary price elasticity and the supply curve is perfectly price elastic.If 3 million tickets are currently sold at a price of $5,approximately how much tax revenue could the government generate from a $1 specific tax?

If the demand for oranges is written as Q = 100 - 5p,then the inverse demand function is

When import restrictions are placed on a good,and as a result the price of the good increases,the demand curve for that good will

An increase in the price of pork will lead to

Introduction

A Consumers Constrained Choice

Demand

Consumer Welfare and Policy Analysis

Firms and Production

Costs

Competitive Firms and Markets

Properties and Applications of the Competitive Model

General Equilibrium and Economic Welfare

Monopoly and Monopsony

Pricing and Advertising

Game Theory

Oligopoly and Monopolistic Competition

Factor Markets

Uncertainty

Property Rights, externalities, rivalry, and Exclusion

Asymmetric Information

Contracts and Moral Hazards

Filters

Exam 2: Supply and Demand

The price for tickets of a sold-out event increase by 30% but quantity sold remains unchanged.The price elasticity of demand equals

If the demand for orange juice is expressed as Q = 2000 - 500p,where Q is measured in gallons and p is measured in dollars,then at the price of $3,the demand curve

Suppose the demand curve is perfectly inelastic and the supply curve is upward sloping.The price sellers receive after a specific tax is imposed on sellers

The market demand for wheat is Q = 100 - 2p + 1pb + 2Y.If the price of wheat,p,is $2,and the price of barley,pb,is $3,and income,Y,is $1000,the income elasticity of wheat is

The demand curve for Widgets is given by QD = 6000 - 2y - 200p + 30pG,where QD is the quantity of widgets demanded,y is the per capital income and pG is the price of Gizmos.Compute the partial derivatives with respect to y and pG.

Suppose the market demand curve for pizza can be expressed as QD = 100 - 2P + 3Pb,where QD is the quantity of pizza demanded,P is the price of a pizza,and Pb is the price of a burrito.What is the slope of this demand function,and what information does the slope provide?

For the following, please answer "True" or "False" and explain why. -As the supply curve shifts to the right,the increase in quantity demanded will not depend on the shape of the demand curve.

A specific tax on sellers will

It is appropriate to use the supply-and demand-model if,in a market,

The vertical distance of the shift in supply from a specific tax of t amount on producers will

-The above figure shows three different supply-and-demand graphs.Which graph best represents the market for vacations on Mars?

An increase in the demand curve for orange juice would be illustrated as a

-The above figure shows a graph of a market for pizzas in a large town.At a price of $7,what is the amount of excess demand?

When it comes to the supply curve of janitors and accountants,

A vertical supply curve exhibits

Suppose the demand curve for movie tickets has unitary price elasticity and the supply curve is perfectly price elastic.If 3 million tickets are currently sold at a price of $5,approximately how much tax revenue could the government generate from a $1 specific tax?

If the demand for oranges is written as Q = 100 - 5p,then the inverse demand function is

When import restrictions are placed on a good,and as a result the price of the good increases,the demand curve for that good will

An increase in the price of pork will lead to

Introduction

A Consumers Constrained Choice

Demand

Consumer Welfare and Policy Analysis

Firms and Production

Costs

Competitive Firms and Markets

Properties and Applications of the Competitive Model

General Equilibrium and Economic Welfare

Monopoly and Monopsony

Pricing and Advertising

Game Theory

Oligopoly and Monopolistic Competition

Factor Markets

Uncertainty

Property Rights, externalities, rivalry, and Exclusion

Asymmetric Information

Contracts and Moral Hazards

Filters