# ECON 5050 Essay

2955 Words Feb 18th, 2014 12 Pages
• Question 1 1 out of 1 points Use the following demand and supply functions to answer the following question:

Demand: Qd = 50 - 4P

Supply Qs = 20 + 2P

Equilibrium price and quantity are
None of the above.
None of the above. • Question 2
0 out of 1 points Suppose a frost destroys much of the Florida orange corp. At the same time, suppose consumer tastes shift toward orange juice. What would we expect to happen to the equilibrium price and quantity in the market for orange juice?
Price will decrease, quantity is indeterminate.
Price will increase, quantity is indeterminate (may increase or
This information tells you that you should:
Selected Answer: d. make no changes until you get more information that would be relevant to the situation.
Correct Answer: d. make no changes until you get more information that would be relevant to the situation. • Question 15
1 out of 1 points We observe that the equilibrium price of coffee falls and the equilibrium quantity falls. Which of the following best fits the observed data?
Selected Answer: d. a decrease in demand with supply constant.
Correct Answer: d. a decrease in demand with supply constant. • Question 16
1 out of 1 points A firm is using 500 units of capital and 200 units of labor to produce 10,000 units of output. Capital costs \$100 per unit and labor \$20 per unit. The last unit of capital added 50 units of output, while the last unit of labor added 20 units of output. The firm