Problem_set3_-_solutions

Problem_set3_-_solutions - EC201 Introduction to...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
EC201 Introduction to Microeconomics (G.Lepori) Spring 2008 1 Name:_______________________ Student Number:_______________ Problem set # 3 (Due on Tuesday 01/29/2006, by 12:40pm) Please staple all the pages together. Circle the most appropriate answer to the following questions (each question is worth 1 point): 1) Lead is an important input in the production of crystal. If the price of lead decreases, other things equal, we would expect the supply of a. crystal to be unaffected. b. crystal to decrease. c. crystal to increase. d. lead to increase. ANS: C 2) An increase in the price of rubber (major input in the production of tires) coincides with an advance in the technology of tire production. As a result of these two events, a. the demand for tires increases and the supply of tires decreases. b. the supply of tires decreases and the demand for tires is unaffected. c. the supply of tires increases and the demand for tires is unaffected. d. none of the above is necessarily correct.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/30/2008 for the course ECON 201 taught by Professor C.liedholm during the Spring '07 term at Michigan State University.

Page1 / 4

Problem_set3_-_solutions - EC201 Introduction to...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online