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First Midterm S08


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ECONOMICS 211 FIRST MIDTERM EXAMINATION, Spring 2008 (2 hours, 100 points) NAME: __________________________________________________________________________ PLEDGE :_______________________________________________________________________________________ _________________________________________________________________________________________________ _________________________________________________________________________________________________ PART 1: MULTIPLE CHOICE: Circle the correct answer (3 points each; 24 points in total) MULTIPLE CHOICE (Circle the correct answer) 1. (3 points) Amy is a college student who buys only two goods: Pizza and Pepsi. To determine how Amy can maximize her utility from consuming Pizza and Pepsi, you need to know: I. Amy’s preferences for Pizza and Pepsi II. The prices of Pizza and Pepsi III. Amy’s income. A) I only. B) I and II. C) II and III. D) I, II and III. 2. (3 points) The demand for a good is perfectly inelastic and the supply for a good is neither perfectly elastic nor perfectly inelastic. The burden of a sales tax on the good is borne by: 3. (3 points) Which of the following variables is changing along an individual demand curve? 1
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4. (3 points) Suppose the absolute value of the price elasticity of demand for tickets to a sports event is 0.82. An increase in the price of the tickets to the sports event will
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