quiz1_5 - Atılım University Department of Economics Econ...

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Unformatted text preview: Atılım University Department of Economics Econ 101.5 / Fall 2006 NAME:____________________ QUIZ # 1 NO:____________ Section:____ Time: 20 minutes 1. By drawing new curve(s) on the provided graphs, show how the following events affect the equilibrium price (PE) and quantity of Good X (QE). (25 p. each) Events P S a) The income of people who like to use good X decreases AND the price of key input increases at the same time. D Q P S b) A decrease in the price of related product that complements Good X D Q 2. By drawing a diagram, show how the following events affect the PPF of Country A, which produces only good X and Y. (25 p. each) Event I: Large number of workers have immigrated to Country A. Event II: A technological advance has increased the output per worker in the good Y industry. 1 ...
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