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 revenuemaximizing price for this university to
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
This is the end of the preview.
Sign up
to
access the rest of the document.
 Spring '08
 TOOSSI
 Supply And Demand, Gas Pump

Click to edit the document details