ECON-1002-2/MGMT-3503-2-Microeconomics Week 3 Exam

ECON-1002-2/MGMT-3503-2-Microeconomics Summer Qtr Exam - Week 3 100 out of 100 points   1. A demand curve: 2. The income effect that results from a price change is given by: 3. The table below shows the quantities demanded and quantities supplied for a good at various prices. The equilibrium price and quantity for the good above respectively equal: 4. When price is below the market equilibrium price: 5. The economic surplus to an individual from consuming a good is given by: 6. A change in "demand" of a good is caused by ______________; a change in "quantity demanded" of a good is caused by ______________: 7. Based on the diagram below, which of the following best explains the change depicted? 8. A production possibilities curve with a bowed outward shape indicates: 9. The increased popularity of screw off caps on wine bottles has led to a decrease in the demand for cork. As a result, we can expect that: 10. If supply shifts in (leftward) and simultaneously demand shifts out (rightward), what can we expect to happen to the equilibrium price and quantity? 11. Based on the table below, the buyer's and seller's surplus associated with the good shown above respectively equal: 12. If all costs of producing a good are borne directly by sellers, and if all benefits from the good accrue directly to buyers, then: 13. The law of demand says that: 14. The real price of a good is given by: 15. Kate can grade 10 exams in an hour or grade 5 papers in an hour. Mike can grade 30 exams or grade 6 papers in an hour. Which of the following statements is true? 16. Suppose there are 10 individuals in the market, each with the demand curve shown below. Which of the following statements is true about the market demand? 17. In the market depicted below, the equilibrium price and quantity are indicated by P* and Q* respectively. The area of consumer surplus is best indicated by letter(s): 18. If demand for a product is elastic with respect to price, this means the: 19. Suppose when the price of tennis balls increases by 5%, the quantity demanded decreases by 4%. The price elasticity of demand for tennis balls equals: 20. All of the following characteristics influence the price elasticity of demand for a good except: 21. Which of the following would shift the production possibilities curve outward? 22. For a seller facing the demand curve shown below, as price decreases from $10 to $0: 23. Which of the following statements is true regarding decision making? 24. A firm knows that the price elasticity of demand for the good they are selling equals 1.5. If they increase the price they charge for their good: 25. A perfectly inelastic supply curve is: