exam1A_FALL2006

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

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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? a. The demand curve shifted to the right. b. The supply curve shifted to the left. c. The demand curve shifted to the left. d. The supply curve shifted to the right. ____ 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.
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This test prep was uploaded on 04/14/2008 for the course BIOL 116 taught by Professor Meyer during the Spring '08 term at Austin College.

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

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