Problem_set4_-_solutions

Problem_set4_-_solutions - EC201 Introduction to...

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EC201 Introduction to Microeconomics (G.Lepori) Spring 2008 1 Name:_______________________ Student Number:_______________ Problem set # 4 (Due on Tuesday 02/05/2008, 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) If demand is inelastic, then a. buyers do not respond much to a change in price. b. buyers respond substantially to a change in price, but the response is very slow. c. both A and D are correct. d. the demand curve is very flat. ANS: A 2) For a good that is a necessity, a. quantity demanded tends to respond substantially to a change in price. b. demand tends to be inelastic. c. the law of demand often does not apply. d. All of the above are correct. ANS: B 3) A person who takes a prescription drug to control high cholesterol most likely has a demand for that drug that is a. inelastic. b. unit elastic.
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Problem_set4_-_solutions - EC201 Introduction to...

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