Question 1

-The above figure shows the demand curve for crude oil.The demand curve has unitary price elasticity when price equals

Accepted Answer

A) $0. 
B) $1. 
C) $10. 
D) $20. 
A) $0. 
B) $1. 
C) $10. 
D) $20.

Question 2

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for non-dairy coffee creamer after severe weather destroys a large portion of the coffee crop?

Accepted Answer

A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D 
A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D

Question 3

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 4

Explain why when the demand curve for a good is elastic,a one percent reduction in the price of the good will increase a consumer's expenditure on the good.

Accepted Answer

When a good has an elastic demand,a one

Question 5

-The above figure shows a graph of the market for pizzas in a large town.What are the equilibrium price and quantity?

Accepted Answer

A) p = 8,Q = 60 
B) p = 60,Q = 8 
C) p = 14,Q = 140 
D) p = 5,Q = 60 
A) p = 8,Q = 60 
B) p = 60,Q = 8 
C) p = 14,Q = 140 
D) p = 5,Q = 60

Question 6

Use supply-and-demand graphs to explain why parking is free at the suburban shopping mall but one typically must pay to park when shopping downtown.

Accepted Answer

@#IMG-DLM& See the above figure.At the suburban sh

Question 7

During the winter of 1997-1998,the northeastern United States experienced warmer than usual conditions.The price of home heating oil was less than it was during the previous winter,but people bought less home heating oil.This contradicts the Law of Demand.

Accepted Answer

A) True 
 B)False

Question 8

The demand curve for Widgets is given by
QD = 5800 - 200p + 30pG
where QD is the quantity of widgets demanded,y is the per capita income and pG is the price of Gizmos.The supply of Widgets is given by:
QS = 250p - 1250
a.Solve for the equilibrium price and quantity of widgets in terms of the price of Gizmos.
b.Compute the comparative static derivatives for the changes in the equilibrium price and quantity of Widgets with respect to a change in the price of Gizmos.

Accepted Answer

a.Set quantity demand equal to quantity

Question 9

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 10

Once an equilibrium is achieved,it can persist indefinitely because

Accepted Answer

A) shocks that shift the demand curve or the supply curve cannot occur. 
B) shocks to the demand curve are always exactly offset by shocks to the supply curve. 
C) the government never intervenes in markets at equilibrium. 
D) in the absence of supply/demand shocks no one applies pressure to change the price. 
A) shocks that shift the demand curve or the supply curve cannot occur. 
B) shocks to the demand curve are always exactly offset by shocks to the supply curve. 
C) the government never intervenes in markets at equilibrium. 
D) in the absence of supply/demand shocks no one applies pressure to change the price.

Question 11

-The above figure shows three different supply-and-demand graphs.Which graph best represents the market for workers at your nearest fast-food restaurant?

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

Which of the following is most likely to be TRUE?

Accepted Answer

A) Income elasticity of demand for fur coats exceeds that of oatmeal. 
B) Income elasticity of demand for oatmeal exceeds that of fur coats. 
C) Income elasticity of demand for fur coats equals that of oatmeal. 
D) It is not possible to make any prediction about relative income elasticities. 
A) Income elasticity of demand for fur coats exceeds that of oatmeal. 
B) Income elasticity of demand for oatmeal exceeds that of fur coats. 
C) Income elasticity of demand for fur coats equals that of oatmeal. 
D) It is not possible to make any prediction about relative income elasticities.

Question 13

The U.S.government imposes a number of import quotas on dairy products,including Swiss cheese.The domestic supply of Swiss cheese is given by:
QDom = 250p - 1000
The supply of Swiss cheese from foreign producers to the U.S.(mostly from Switzerland,of course),is given by:
QFor = 1125p - 4500
In both equations above,Q is the quantity of cheese (100's of lbs/month),and p is the price per pound.
a.Using the equations above,derive the total supply of cheese equation to the U.S.in the absence of any quota.
Suppose that fears of neutral countries (like Switzerland)spark the U.S.to restrict imports of Swiss cheese to Q = 9000.
b.On a graph,draw (i)the domestic, (ii)foreign and (iii)total supply with the quota.

Accepted Answer

a.We add the domestic supply and foreign

Question 14

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 15

Suppose the market for grass seed can be expressed as:
Demand: QD = 100 - 2p
Supply: QS = 3p
At the market equilibrium,calculate the price elasticities of supply and demand.Use these numbers to predict the change in price resulting from a specific tax.

Accepted Answer

At p = 20 Q = 60,e = -2 ∗ (20/

Question 16

An increase in the price of pork will lead to

Accepted Answer

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

Question 17

If the demand curve for comic books is expressed as Q = 10,000/p,then demand has a unitary elasticity

Accepted Answer

A) only when p = 10,000. 
B) only when p = 100. 
C) always. 
D) never. 
A) only when p = 10,000. 
B) only when p = 100. 
C) always. 
D) never.

Question 18

Municipalities that have adopted the policy of "rent control" typically set the rentals on certain apartments well below equilibrium.As a result,

Accepted Answer

A) landlords have a difficult time finding tenants. 
B) prospective tenants have a difficult time finding available apartments. 
C) there is a surplus of apartments. 
D) All of the above. 
A) landlords have a difficult time finding tenants. 
B) prospective tenants have a difficult time finding available apartments. 
C) there is a surplus of apartments. 
D) All of the above.

Question 19

The demand equation Q = .5p-.75 is equivalent to the log-linear demand equations

Accepted Answer

A) Q = ln(.5)- .75ln(p) 
B) ln(Q)= ln(.5)- .75ln(p) 
C) ln(Q)= .5 - .75ln(p) 
D) ln(Q)= ln(.75)- .5ln(p) 
A) Q = ln(.5)- .75ln(p) 
B) ln(Q)= ln(.5)- .75ln(p) 
C) ln(Q)= .5 - .75ln(p) 
D) ln(Q)= ln(.75)- .5ln(p)

Question 20

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for computer manuals after technological advances in making computers occur?

Accepted Answer

A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D 
A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D

-The above figure shows the demand curve for crude oil.The demand curve has unitary price elasticity when price equals

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for non-dairy coffee creamer after severe weather destroys a large portion of the coffee crop?

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

Explain why when the demand curve for a good is elastic,a one percent reduction in the price of the good will increase a consumer's expenditure on the good.

-The above figure shows a graph of the market for pizzas in a large town.What are the equilibrium price and quantity?

Use supply-and-demand graphs to explain why parking is free at the suburban shopping mall but one typically must pay to park when shopping downtown.

During the winter of 1997-1998,the northeastern United States experienced warmer than usual conditions.The price of home heating oil was less than it was during the previous winter,but people bought less home heating oil.This contradicts the Law of Demand.

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

Once an equilibrium is achieved,it can persist indefinitely because

-The above figure shows three different supply-and-demand graphs.Which graph best represents the market for workers at your nearest fast-food restaurant?

Which of the following is most likely to be TRUE?

A vertical supply curve exhibits

Suppose the market for grass seed can be expressed as: Demand: Q_D = 100 - 2p Supply: Q_S = 3p At the market equilibrium,calculate the price elasticities of supply and demand.Use these numbers to predict the change in price resulting from a specific tax.

An increase in the price of pork will lead to

If the demand curve for comic books is expressed as Q = 10,000/p,then demand has a unitary elasticity

Municipalities that have adopted the policy of "rent control" typically set the rentals on certain apartments well below equilibrium.As a result,

The demand equation Q = .5p^-.75 is equivalent to the log-linear demand equations

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for computer manuals after technological advances in making computers occur?

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 above figure shows the demand curve for crude oil.The demand curve has unitary price elasticity when price equals

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for non-dairy coffee creamer after severe weather destroys a large portion of the coffee crop?

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

Explain why when the demand curve for a good is elastic,a one percent reduction in the price of the good will increase a consumer's expenditure on the good.

-The above figure shows a graph of the market for pizzas in a large town.What are the equilibrium price and quantity?

Use supply-and-demand graphs to explain why parking is free at the suburban shopping mall but one typically must pay to park when shopping downtown.

During the winter of 1997-1998,the northeastern United States experienced warmer than usual conditions.The price of home heating oil was less than it was during the previous winter,but people bought less home heating oil.This contradicts the Law of Demand.

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

Once an equilibrium is achieved,it can persist indefinitely because

-The above figure shows three different supply-and-demand graphs.Which graph best represents the market for workers at your nearest fast-food restaurant?

Which of the following is most likely to be TRUE?

A vertical supply curve exhibits

Suppose the market for grass seed can be expressed as: Demand: QD = 100 - 2p Supply: QS = 3p At the market equilibrium,calculate the price elasticities of supply and demand.Use these numbers to predict the change in price resulting from a specific tax.

An increase in the price of pork will lead to

If the demand curve for comic books is expressed as Q = 10,000/p,then demand has a unitary elasticity

Municipalities that have adopted the policy of "rent control" typically set the rentals on certain apartments well below equilibrium.As a result,

The demand equation Q = .5p-.75 is equivalent to the log-linear demand equations

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for computer manuals after technological advances in making computers occur?

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

Suppose the market for grass seed can be expressed as: Demand: Q_D = 100 - 2p Supply: Q_S = 3p At the market equilibrium,calculate the price elasticities of supply and demand.Use these numbers to predict the change in price resulting from a specific tax.

The demand equation Q = .5p^-.75 is equivalent to the log-linear demand equations