ECON 110 ZIRLOTT TEST 1 EXAM
QUESTIONS AND ANSWERS 100% PASS
2026/2027
The market for a Dell computer is composed of the following equations: Demand equation
Qd=2000-3P; Supply equation Qs=-1000+2P
1. based on the info, what is the equilibrium price?
2. what is the equilibrium quantity?
3. now consider what would happen to the market if Hewlett-Packet lowers the price of their
computers and at the same time there is a large decrease in the price of processor microchips:
a) there is a decrease in the demand and supply of dell computers, which results in a decrease
in the quantity of dell computers but price becomes unknown
b) there is an increase in the demand and supply of dell computers, which results in an increase
in the price and quantity of dell computers
c) there is an increase in the supply of dell computers and a decrease in demand, which results
in a decrease in the price of dell computers but the quantity becomes unknown
d) there is a decrease in the supply of dell computers - ANS 1. $600
2. 200 units
3. C
How can you tell if a point on a graph is inefficient? - ANS its inside the curve
@2026 ALLRIGHTS RESERVED 1
, Justin decides to spend an additional hour working overtime rather than playing football with
his friends. he earns $6 an hour for his hour's work. his opportunity cost is... - ANS the
enjoyment he would have received playing football with his friends
Peter and Olivia work for a clothing store called Alternate Reality making both jeans and t-shirts.
Peter can make 40 t-shirts in one hour or 10 pairs of jeans in one hour. Olivia can make 30 t-
shirts in one hour or 15 pairs of jeans. Based on this info, answer:
-Who has the absolute advantage in making t-shirts and who has the absolute advantage in
making jeans? - ANS Peter has absolute advantage in tshirts
Olivia has absolute advantage in jeans
Peter and Olivia work for a clothing store called Alternate Reality making both jeans and t-shirts.
Peter can make 40 t-shirts in one hour or 10 pairs of jeans in one hour. Olivia can make 30 t-
shirts in one hour or 15 pairs of jeans. Based on this info, answer:
-the opportunity cost of 1 t-shirt for Peter is... - ANS 1/4 or 0.25 pairs of jeans
(How: 10 jeans/40 t-shirts = 10/40 = 1/4)
Peter and Olivia work for a clothing store called Alternate Reality making both jeans and t-shirts.
Peter can make 40 t-shirts in one hour or 10 pairs of jeans in one hour. Olivia can make 30 t-
shirts in one hour or 15 pairs of jeans. Based on this info, answer:
-the opportunity cost of 1 pair of jeans for Peter is... - ANS 4 t-shirts
(How: 40 t-shirts/10 jeans = 40/10 = 4)
Peter and Olivia work for a clothing store called Alternate Reality making both jeans and t-shirts.
Peter can make 40 t-shirts in one hour or 10 pairs of jeans in one hour. Olivia can make 30 t-
shirts in one hour or 15 pairs of jeans. Based on this info, answer:
-the opportunity cost of 1 t-shirt for Olivia is... - ANS 1/2 or 0.5 pairs of jeans
(How: 15 jeans/30 t-shirts = 15/30 = 1/2)
@2026 ALLRIGHTS RESERVED 2
QUESTIONS AND ANSWERS 100% PASS
2026/2027
The market for a Dell computer is composed of the following equations: Demand equation
Qd=2000-3P; Supply equation Qs=-1000+2P
1. based on the info, what is the equilibrium price?
2. what is the equilibrium quantity?
3. now consider what would happen to the market if Hewlett-Packet lowers the price of their
computers and at the same time there is a large decrease in the price of processor microchips:
a) there is a decrease in the demand and supply of dell computers, which results in a decrease
in the quantity of dell computers but price becomes unknown
b) there is an increase in the demand and supply of dell computers, which results in an increase
in the price and quantity of dell computers
c) there is an increase in the supply of dell computers and a decrease in demand, which results
in a decrease in the price of dell computers but the quantity becomes unknown
d) there is a decrease in the supply of dell computers - ANS 1. $600
2. 200 units
3. C
How can you tell if a point on a graph is inefficient? - ANS its inside the curve
@2026 ALLRIGHTS RESERVED 1
, Justin decides to spend an additional hour working overtime rather than playing football with
his friends. he earns $6 an hour for his hour's work. his opportunity cost is... - ANS the
enjoyment he would have received playing football with his friends
Peter and Olivia work for a clothing store called Alternate Reality making both jeans and t-shirts.
Peter can make 40 t-shirts in one hour or 10 pairs of jeans in one hour. Olivia can make 30 t-
shirts in one hour or 15 pairs of jeans. Based on this info, answer:
-Who has the absolute advantage in making t-shirts and who has the absolute advantage in
making jeans? - ANS Peter has absolute advantage in tshirts
Olivia has absolute advantage in jeans
Peter and Olivia work for a clothing store called Alternate Reality making both jeans and t-shirts.
Peter can make 40 t-shirts in one hour or 10 pairs of jeans in one hour. Olivia can make 30 t-
shirts in one hour or 15 pairs of jeans. Based on this info, answer:
-the opportunity cost of 1 t-shirt for Peter is... - ANS 1/4 or 0.25 pairs of jeans
(How: 10 jeans/40 t-shirts = 10/40 = 1/4)
Peter and Olivia work for a clothing store called Alternate Reality making both jeans and t-shirts.
Peter can make 40 t-shirts in one hour or 10 pairs of jeans in one hour. Olivia can make 30 t-
shirts in one hour or 15 pairs of jeans. Based on this info, answer:
-the opportunity cost of 1 pair of jeans for Peter is... - ANS 4 t-shirts
(How: 40 t-shirts/10 jeans = 40/10 = 4)
Peter and Olivia work for a clothing store called Alternate Reality making both jeans and t-shirts.
Peter can make 40 t-shirts in one hour or 10 pairs of jeans in one hour. Olivia can make 30 t-
shirts in one hour or 15 pairs of jeans. Based on this info, answer:
-the opportunity cost of 1 t-shirt for Olivia is... - ANS 1/2 or 0.5 pairs of jeans
(How: 15 jeans/30 t-shirts = 15/30 = 1/2)
@2026 ALLRIGHTS RESERVED 2
