SolQuestionsEA2

# SolQuestionsEA2 - Last Name First Name ECON 2010 200...

This preview shows pages 1–3. Sign up to view the full content.

Last Name: ___________________ First Name: _______________________ ECON 2010 – 200 Principles of Microeconomics Exam # 1-Version A Fall 2007 Section 1. Multiple choice questions: ___1. The opportunity cost of an airplane flight: a. differs across passengers to the extent that each traveler pays a different airfare. b. is identical for all passengers. c. is equal to the cost of a bus ticket, the next best alternative transportation flying. d. differs across passengers to the extend that both the airfare paid and the highest valued use of travel time vary. ___2. Assume that Chinese food and Thai food are substitutes, if Liu’s Chinese Restaurant reduces its prices: a. the demand for meals at Liu’s will increase. b. the demand for meals at the Ratisukpimol’s Thai Restaurant will decrease. c. the quantity demanded of food from Liu’s will decrease. d. the demand for meals at the Ratisukpimol’s Thai Restaurant will increase. ___ 3. Which of the following will not cause a change in the demand for a product? a. a change in the price of a substitute product. b. a change in consumer preferences. c. a change in the price of the product. d. a change in consumer’s income. e. a change in expectations that the product’s price will soon fall. ___ 4. Last week Pizza Hut’s supplier of pepperoni informed it of a 30% increase in the price of pepperoni. Which variable determining the position of the supply curve has changed and what effect does it have on the supply curve? a. input prices, and supply decreases. b. input prices, and supply increases. c. future expectations, and supply decreases. d. future expectations, and supply increases. e. technology, and supply increases. ___ 5. A beer company knows that after increasing the price from \$10 to \$20 per 6-pack, the quantity of beers will fall from 100 to 95. Therefore, the demand for beer is: a. elastic, with a price elasticity of demand greater than one. b. unit elastic, with a price elasticity of demand equal to one. c. inelastic, with a price elasticity of demand less than one. d. elastic, with a price elasticity of demand less than one. e. inelastic, with a price elasticity of demand greater than one. 1

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
___ 6. The price elasticity of demand coefficient for Pepsi is estimated to be equal to 2.5. Hence, it is expected that a 6% decrease in price would lead to: a. a 15% decrease in the quantity demanded of Pepsi. b.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 11

SolQuestionsEA2 - Last Name First Name ECON 2010 200...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online