EQ1Spring07_practice_

EQ1Spring07_practice - EC102 Quiz 1 Elena Quercioli Groundhog Day February 2 2007 Clearly indicate a first choice and a second choice If your first

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EC102 Quiz 1 Elena Quercioli Groundhog Day, February 2, 2007 Clearly indicate a first choice and a second choice. If your first choice is right, you get 7 points. If your second choice is right, you get 2 points. If both are wrong, you get 0. Note that there is an incentive to guess if you are unsure. 1) If supply and demand curves shift right, then a. the price rises, and quantity falls b. the quantity rises, and price falls c. the price and quantity rise d. the price rises, and quantity might rise or fall e. the quantity rises, and price might rise or fall 2) Suppose the demand curve is linear. Then as the price falls from the maximum to the minimum feasible levels, a. the total revenue first falls and then rises b. the total revenue is constant c. the total revenue first rises and then falls d. the total revenue constantly falls e. the total revenue constantly rises
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3) Suppose the supply curve slopes up and the demand curve slopes down. Assume that the supply curve shifts up by $10 at each quantity. Then a. The resulting market price rises more than $10 b. The resulting market price rises by exactly $10 and quantity falls c. The resulting market price rises less than $10 d. The resulting market price might rise more or less than $10 e. The resulting market price rises by exactly $10 and quantity rises 4) If the price rises by 20% when its quantity demanded falls by 80%, then
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This note was uploaded on 04/27/2008 for the course ECON 102 taught by Professor Pereira during the Spring '07 term at Tulane.

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EQ1Spring07_practice - EC102 Quiz 1 Elena Quercioli Groundhog Day February 2 2007 Clearly indicate a first choice and a second choice If your first

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