MDU4031 EXAM 1 QUESTIONS
ANSWERS 2026 UNIVERSITY TEST
PAPER SOLUTIONS GRADED A+
◉ The table below shows the weekly demand for hamburgers in a
market where there are just three buyers.
Price: $6, $5, $4, $3
Quantity Demanded by Buyer 1: 7, 9, 15, 21
Quantity Demanded by Buyer 2: 4, 7, 10, 15
Quantity Demanded by Buyer 3: 6, 8, 12, 16
Refer to the table. At a price of $4, the weekly quantity of hamburgers
demanded in the market is
A.) 22
B.) 41
C.) 37
D.) 25
Answer: C.) 37
◉ If X is a normal good, an increase in income will shift the
A.) demand curve for X to the left.
B.) demand curve for X to the right.
C.) supply curve for X to the left.
D.) supply curve for X to the right.
, Answer: B.) demand curve for X to the right.
◉ A baker can produce two products: cupcakes and pies. The table
below is the baker's production possibilities schedule:
Product: A, B, C, D, E, F
Cupcakes: 0, 12, 20, 36, 56, 81
Pie: 10, 8, 6, 4, 2, 0
If the baker uses all of its resources to produce only pies, then the total
number of pies will be
A.) 2
B.) 81
C.) 20
D.) 10
Answer: D.) 10
◉ How would a rational student decide how much to study for this
exam?
What is your opportunity cost of taking this exam?
Answer: keep studying as long as perceived marginal benefit is at least
as big as marginal cost.
answers might be: eating lunch, making money working, or studying for
another course.
◉ Answer the next question(s) based on the following supply and
demand schedules in units per week for a product.
ANSWERS 2026 UNIVERSITY TEST
PAPER SOLUTIONS GRADED A+
◉ The table below shows the weekly demand for hamburgers in a
market where there are just three buyers.
Price: $6, $5, $4, $3
Quantity Demanded by Buyer 1: 7, 9, 15, 21
Quantity Demanded by Buyer 2: 4, 7, 10, 15
Quantity Demanded by Buyer 3: 6, 8, 12, 16
Refer to the table. At a price of $4, the weekly quantity of hamburgers
demanded in the market is
A.) 22
B.) 41
C.) 37
D.) 25
Answer: C.) 37
◉ If X is a normal good, an increase in income will shift the
A.) demand curve for X to the left.
B.) demand curve for X to the right.
C.) supply curve for X to the left.
D.) supply curve for X to the right.
, Answer: B.) demand curve for X to the right.
◉ A baker can produce two products: cupcakes and pies. The table
below is the baker's production possibilities schedule:
Product: A, B, C, D, E, F
Cupcakes: 0, 12, 20, 36, 56, 81
Pie: 10, 8, 6, 4, 2, 0
If the baker uses all of its resources to produce only pies, then the total
number of pies will be
A.) 2
B.) 81
C.) 20
D.) 10
Answer: D.) 10
◉ How would a rational student decide how much to study for this
exam?
What is your opportunity cost of taking this exam?
Answer: keep studying as long as perceived marginal benefit is at least
as big as marginal cost.
answers might be: eating lunch, making money working, or studying for
another course.
◉ Answer the next question(s) based on the following supply and
demand schedules in units per week for a product.
