Sample final exam(1) (7) - MCE Microeconomics Final Exam...

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MCE Microeconomics – Final ExamProfessor Neal HarrisName___________________________________PART I. 20 MULTIPLE CHOICE QUESTIONS. Choose the one alternative that best completes the statement or answers the question. 3 points each (60 pts). Feel free to use the back for calculations.1) Technological advancements have resulted in lower prices for digital cameras. What is the impact of this on the market for traditional photography? 1) _______ A) The demand curve for traditional photography shifts to the left. B) The supply curve for traditional photography shifts to the right. C) The demand curve for traditional photography shifts to the right. D) The supply curve for traditional photography shifts to the left.
The following question(s) are based on Figure 3-2.Figure 3-22) Refer to Figure 3-2. If the price is $25, 2) _______
3) Consider the market for rental apartments. What happens in this market if the government imposes a rent control price below the market equilibrium price? 3) _______
Figure 4-2 shows the producer side of a market. The following question(s) are based on this figure.Figure 4-24) Refer to Figure 4-2. What is the area that represents producer surplus at price P2 ? 4) _______
C
D
B
+E 5) Refer to Figure 4-2.What is the area that represents the increase in producer surplus when the market price rises from P1 to P2 ? 5) _______ A) A +C +B) A +C) C +D) B +
E
B
E
D 6) Qiana Riley runs a stand in the local mall that serves vegetable protein shakes. Last month was an exceptionally slow month: sales fell by 25 percent when Qiana raised the price of her shakes in response to a substantial increase in the price of alfalfa, a key ingredient in her shakes. Qiana estimates that the price elasticity of demand for vegetable protein shakes is 2.4 in absolute value. Using the information given, calculate the percentage increase in the price of her shakes. 6) _______

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