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mic_mock_final - Name Date Use the following to answer...

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Name: __________________________ Date: _____________ Use the following to answer question 1: 1. In figure 3.8, what would be the result if a price ceiling is set which is $2 different from the equilibrium price and demand increased by 30? A) The price would be above equilibrium and a surplus of 90 would be produced. B) The price would be below equilibrium and a shortage of 90 would be produced. C) The price would be above equilibrium and a shortage of 90 would be produced. D) The price would be below equilibrium and a surplus of 90 would be produced. Page 1
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Use the following to answer question 2: 2. In figure 3.6, what could cause the movement from point D to point A? 3. What can we conclude if consumers are forced to wait in long line-ups in order to purchase products such as food and fuel? 4. What is the effect of a decrease in business taxes? Page 2
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Use the following to answer question 5: Price Quantity demanded Quantity supplied 0 200 0 .1 160 0 .2 120 40 .3 80 80 .4 40 120 .5 0 160 5. In table 3.4 a price ceiling of $0.2 means that: A) the market is in equilibrium because quantity demanded equals quantity supplied. B) there is a surplus in the market of 80 units. C) there is a shortage in the market of 40 units. D) there is a shortage in the market of 80 units. Use the following to answer question 6: Table 4.3 Here are data for a situation in which several variables change Year Income Price of x Q x demanded Price of y Q y demanded 1 $40 000 $140 50 $40 200 2 40 000 150 40 40 160 3 40 000 150 30 70 140 4 50 000 150 40 70 160 5 50 000 160 50 90 200 6. Referring to table 4.3, between years 4 and 5 both the price and the quantity demanded of X increased. What is the best possible explanation of this? Page 3
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