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
Answer
Selected Answer: d.
None of the above.
Correct Answer: d.
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?
Answer
Selected Answer: c.
Price will decrease, quantity is indeterminate.
Correct Answer: a.
Price will increase, quantity is indeterminate (may increase or
…show more content…
This information tells you that you should:
Answer
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?
Answer
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
Answer
Selected Answer: d. could produce the same level of output at a lower cost by using less capital and more labor.
Correct Answer: d. could produce the same level of output at a lower cost by using less capital and more labor. • Question 17
1 out of 1 points In which of the following cases will the effect on equilibrium quantity be indeterminate (i.e., depend on the magnitudes of the shifts in supply and demand)?
Answer
Selected Answer: c.
Demand

Related Documents