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Econ test 2 and 3

# Econ test 2 and 3 - Microsoft products(computer software...

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Microsoft products (computer software) and Intel microchips (computer hardware) are likely to have a cross- price elasticity of demand that is Negative Graphically, total cost can be found by, The rectangle formed under the average-total-cost curve at a given ATC and quantity combination. The law of diminishing marginal returns is, A physical law, but is important to economics Suppose that four workers can harvest 20 bushels of corn on an acre of land per day, while five workers can harvest 25 bushels. Then The marginal physical product of the fifth worker is 5 and the average physical product of five workers is 5. When the price of good X is \$8 per unit, 1,250 unites are sold per week. When the price of good X is \$6 per unit, 1,750 units are sold per week. What is the coefficient of the own-price elasticity of demand for good X over this price range? -7/6 If the price elasticity of demand, ed, is equal to -2, then a 20 percent increase in quantity demanded would result from a 10 percent decrease in price

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