{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Midterm1_F08(2)

# Midterm1_F08(2) - ECONOMICS 211 FIRST MIDTERM EXAMINATION...

This preview shows pages 1–3. Sign up to view the full content.

ECONOMICS 211 FIRST MIDTERM EXAMINATION, Fall 2008 (2 hours, 100 points) NAME: __________________________________________________________________________ PLEDGE :_______________________________________________________________________________________ _________________________________________________________________________________________________ _________________________________________________________________________________________________ PART 1: MULTIPLE CHOICE: Circle the correct answer (3 points each; 18 points in total) 1. (3 points) If Amtrak Train Co. raises the price of its passenger tickets, then a) the company’s total revenue will increase if demand is unitary elastic with respect of price. b) the more price elastic the demand at the original market equilibrium the greater will be the decrease in the number of tickets demanded. c) the greater the cross elasticity between Amtrak train tickets and Greyhound bus tickets, the greater the decrease in demand for bus tickets. d) the company's total revenue will decrease if it is a normal good. 2. (3 points) Which of the following statements would you expect to be true about T-shirts and clothing? 1

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

View Full Document
3. (3 points) Which of the following is a TRUE statement about a normal good? PART II: SHORT PROBLEMS ( 14 points in total) 4. (5 points) If the demand curve for a good is perfectly inelastic, then the good is inferior. True or False? Explain your answer.
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