ch15 - ch15 Multiple Choice Identify the choice that best...

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ch15 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Suppose every Buick owner’s demand for gasoline is 20 – 5 p for p less than or equal to 4 and 0 for p > 4. Every Dodge owner’s demand is 15 – 3 p for p less than or equal to 5 and 0 for p > 5. Suppose that Gas Pump, South Dakota, has 100 Buick owners and 200 Dodge owners. If the price of gasoline is $3.50, what is the total amount of gasoline demanded in Gas Pump? a. 2,300 gallons b. 575 gallons c. 1,725 gallons d. 1,150 gallons e. None of the above. ____ 2. The demand function for drangles is given by D ( p ) = ( p + 1) –2 . If the price of drangles is $11, then the price elasticity of demand is a. –7.33. b. –3.67. c. –5.50. d. –0.92. e. –1.83. ____ 3. The only quantities of good 1 that Barbie can buy are 1 unit or zero units. For x 1 equal to zero or 1 and for all positive values of x 2 , suppose that Barbie’s preferences were represented by the utility function ( x 1 + 10)( x 2 + 12). Then if her income were $4, and price of x 2 is 1,her reservation price for good 1 would be a. $2.91. b. $6.50. c. $1.45. d. $.83. e. $1.10. ____ 4. There is a university where the demand for football tickets at each game is 100,000 – 8,000 p . If the capacity of the stadium at that university is 60,000 seats, what is the revenue-maximizing price for this university to
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This note was uploaded on 08/25/2009 for the course ECON 302 taught by Professor Toossi during the Spring '08 term at University of Illinois at Urbana–Champaign.

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ch15 - ch15 Multiple Choice Identify the choice that best...

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