WORKSHEET 1_Answers

WORKSHEET 1_Answers - for plane tickets this month c...

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ANSWER SHEET WORKSHEET 1 Recitation for Economics 2010-400 Principles of Macroeconomics Fall 2007 Question Number Answer Question Number Answer 1 Computers Grain Germany 15 5 Poland 4 4 6 Germany, because they can produce 15 vs. Poland’s 4. 2 1/3 7 Germany, because they can produce computers at a lower opportunity cost (1/3 < 1). 3 1 8 Poland, because they can produce grain at a lower opportunity cost (1<3). 4 3 9 C 5 1 10 C 11 C 12. Golfland Footballand Golfland 0 10 20 30 40 50 60 70 80 90 100 0 5 10 15 20 25 30 35 clubs footballs PPF CPF Footballand 20 0 27 0 10 20 30 40 50 60 70 80 90 0 5 10 15 20 25 30 clubs PPF CPF 1
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13. Illustrate the following using graphs. a) Leisure travelers expect that next month the airlines will be in a price war. b) The surgeon general announces that eating pretzels causes warts. c) The U.S. experiences another baby boom. d) Wages increase. e) The price of tennis rackets increases. f) The price of shoes decreases. a) Demand/quantity demanded b) Demand/quantity demanded for pretzels
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Unformatted text preview: for plane tickets this month c) Demand/quantity demanded for baby items d) Demand/quantity demanded for Spam (Spam is an inferior good) e) Demand/quantity demanded for tennis balls f) Demand/quantity demanded for shoes 2 price quantity Demand curve 1 Demand curve 2 price quantity Demand curve 1 Demand curve 2 price quantity Demand curve 1 Demand curve 2 price quantity Demand curve 1 Demand curve 2 price quantity Demand curve 1 Demand curve 2 A price quantity Demand curve 1 B 14. Ed = 1.1. Elastic 15. Refer to the diagram below and assume that price decreases from $10 to $2. The coefficient of the price elasticity of supply (midpoints formula) relating to this price change is about: a) 4 and supply is elastic. b) 1 and supply is unit elastic. c) 0.5 and supply is inelastic. d) 0.25 and supply is inelastic 3...
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WORKSHEET 1_Answers - for plane tickets this month c...

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