exam1A_FALL2006 - EXAM 1 Instructions 1 Write all answers...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
EXAM 1 Instructions 1. Write all answers in your blue book. Answers that are not written in the blue book will not be counted. 2. Write your name, the date, and class on the cover of your blue book. Also, write and sign your name on the top of this page. 3. Follow instructions for each section. Multiple Choice – 4 Points each Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Elasticity of supply becomes __________ elastic over time because __________. a. more; suppliers have more time to acquire additional resources to achieve desired capacity and consumers can alter their consumption patterns. b. less; suppliers have more time to acquire additional resources to achieve desired capacity c. more; demand becomes more inelastic and supply becomes more inelastic d. less; of the growing scarcity of resources ____ 2. Consider the market for crude oil (used to make gasoline). During the 2003 war in Iraq, the price of crude oil, and thus gasoline, increased. Holding all other things constant, the increase in gasoline prices had what effect on the SUV market? ____ 3. NOT RELEVANT TO FA2007 If you had been willing to pay $2.19 for the gallon of milk purchased at the supermarket but were required to pay only $1.89, you have gained a. a refund of $.30 from the clerk. b. a consumer surplus amounting to $.30. c. excess marginal benefit of $2.19.
Image of page 1

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

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern