Tute9_2016 - ECON3101 Microeconomics 3 Tutorial 9 Partial...

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

View Full Document Right Arrow Icon
ECON3101 Microeconomics 3 Tutorial 9 1 Partial equilibrium Multiple choice 1. A demand curve will shift out for any of the following reasons except a. preference for a good increases. b. price of a substitute falls. c. income rises. d. price of a complement falls. 2. Suppose that the price elasticity of demand for a product is - 1 and that the price elasticity of supply is +1. Assume also that the income elasticity of demand is +2. Then an increase in income of 10% will raise equilibrium price by 3. Long-run producer surplus in a perfectly competitive industry accrues mainly to Problems 1. A perfectly competitive industry has a large number of potential entrants. Assume entry has no effect on the price of the firms’ inputs. Each firm has an identical cost structure such that
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