Quiz1_ans[1] - Name Section(circle one 9:00 10:00 K...

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---------------- Name: Section: (circle one) 9:00 10:00 Economics 218 K. Segerson Intermediate Micro Theory Spring 2008 QUIZ 1 - kE'I Please circle the correct answers. 1. Consider a market in which the demand curve is given by Q = 200 - 2P and the supply curve D is given by Q s = 80 + 2P . At the equilibrium (P, Q) combination, the (point) elasticity of demand IS (a) -.001 (c) - Y2 (b) -2 (d) -1 2. On Valentine's Day, many people like to give roses to someone they love. Consider the market for roses. Economic theory predicts that around Valentine's Day (Cl) the demand curve for roses will shift out, and the equilibrium price will rise. (b) there will be no shift in the demand curve, but the equilibrium price will rise as the equilibrium moves up the demand curve. (c) the supply curve will shift to the left as more people buy roses, and the equilibrium price will rise. (d) there will be a shortage of roses because of increased demand. Use the following information for the remaining questions: Consider a consumer, Joe, who gets satisfaction or
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