ECON1000%20exam%20December%20071

# ECON1000%20exam%20December%20071 - PART AMULTIPLE CHOICE DO...

This preview shows pages 1–5. Sign up to view the full content.

PART A—MULTIPLE CHOICE. DO ALL QUESTIONS. 2 MARKS EACH Answer on attached sheet. Be sure to detach and hand in with your exam. Figure1 1. Refer to Figure 1 . What is the opportunity cost to society of bananas when considering the movement from point A to point C? a. 50 baseballs b. 100 baseballs c. 100 bananas d. 300 bananas Figure 2 2. Refer to Figure 2 . For Ben, the opportunity cost of 1 pound of ice cream is

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

View Full Document
3.Which of the following demonstrates the law of demand? 4.When the price of bubble gum is \$0.55, the quantity demanded is 400 packs per day. When the price falls to \$0.45, the quantity demanded increases to 600. Given this information and using the midpoint method, you know that the demand for bubble gum is Figure 5 5. Refer to Figure 5 . If point B is unit elastic and if the price of the product declines in the A range of the demand curve we can expect total revenue to a. increase. b. decrease. c. stay the same. d. decrease, then increase. Figure 6
6. Refer to Figure 6 . If the government imposes a binding price ceiling in this market at a price of \$5.00, the result would be a Figure 7 7. Refer to Figure 7 . Assume that the consumer depicted in the figure has an income of \$20. The price of Skittles is \$2 and the price of M&M's is \$2. This consumer will choose to optimize by consuming Figure 8

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

View Full Document
8. Refer to Figure 8 . Which area represents the increase in consumer surplus when the price falls from P 1 to P 2 ? Figure 9
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern