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EQ1Spring07_practice_

EQ1Spring07_practice_ - EC102 Quiz 1 Elena Quercioli...

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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,
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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
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