Micro final review 2005

Micro final review 2005 - Review for Final (covers exams...

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Review for Final (covers exams 1-3, look at your fourth exam for review for the fourth exam) 1. If the supply curve shifts left, and the demand curve shifts right we can expect; a. a decrease in equilibrium quantity b. an increase in equilibrium quantity c. a decrease in equilibrium price d. an increase in equilibrium price 2. A 5 percent increase in the price of good X increases quantity demanded of good Y by 5 percent. You conclude X and Y are _______ goods. a. Normal b. Substitute c. Complement d. Inferior 3. Supply is inelastic if a. a large change in price causes a small change in quantity supplied b. the elasticity of supply is greater than one c. a small change in price causes a large change in quantity supplied d. the quantity supplied is very responsive to price changes 4. An increase in supply will have what effect on equilibrium price and quantity? a. both price and quantity will increase b. price will increase, quantity will decrease c. both price and quantity will decrease
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This note was uploaded on 05/01/2008 for the course ECON 2010 taught by Professor Mertens,wi during the Fall '07 term at Colorado.

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Micro final review 2005 - Review for Final (covers exams...

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