Quiz4 - WebCT 2:39 AM Name Date 1 An increase in price and...

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WebCT Page 1 of 4 https://c.view.usg.edu/webct/cobaltMainFrame.dowebct Name: __________________________ Date: _____________ 1. An increase in price and ambiguous change in quantity is most likely caused by: A. a shift to the left in demand and no shift in supply. B. a shift to the left in supply and no shift in demand. C. a shift to the right in supply and a shift to the left in demand. D. a shift to the left in supply and a shift to the right in demand. 2. The Cozy Chair Company believes it can sell 200 chairs at $200 per chair, or 300 chairs at $150 per chair. Using the midpoint formula, you can calculate that the price elasticity of demand (to the nearest tenth) for Cozy Chairs is: A. 2.5. B. 1.4. C. 0.7. D. 0.5. Figure: Consumer Surplus Reference: Ref 6-5 3. (Figure: Consumer Surplus) In the accompanying figure, when the price rises from $30 to $35, consumer surplus ______ for a total consumer surplus of ______. A.
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Quiz4 - WebCT 2:39 AM Name Date 1 An increase in price and...

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