Q1S09 - Name Test Form A Economics 1 Quiz 1 True-False...

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Name Test Form A Economics 1 Quiz 1 April 22, 2009 True-False Questions: Fill in Bubble A for True, Bubble B for False. 1. Consumer’s surplus is the difference between the number of units of a good demanded and the number of units supplied. 2. A market outcome is not efficient if some other possible arrangement of trades will result in higher total profits for market participants. 3. If all buyers in an experimental market are able to buy a unit of the good, the market efficiency of the experimental outcome is 100%. 4. Assume the supply curve for a good shifts in (less supplied at every price) and the demand curve for the good does not change. If the total revenue of suppliers rises as a result of this shift, the demand for the good is inelastic. 5. The fact that fresh raspberries are both cheaper and more plentiful in the summer than in the winter is best explained by a shift in the demand curve. Multiple Choice Questions 6. The supply function for fresh strawberries is given by the equation P s ( Q ) = 3 + 6 Q . The demand function is given by the equation P d ( Q ) = 187 - 2 Q where Q is the number of crates of strawberries sold. In competitive equilibrium, how many crates of strawberries will be sold? (a) 20 (b) 23 (c) 28 (d) 141 (e) None of the above.
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Economics 1 2 7. In the Farmers’ Apple Market as in Experiment 1, there are 15 buyers with a $40 buyer value, 10 buyers with a $20 buyer value, 10 sellers with a $10 seller cost, and 10 sellers with a $30 seller cost. Suppose you arranged trades among these buyers and sellers to maximize the total profit from trade. How many trades would you arrange? (a)
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Q1S09 - Name Test Form A Economics 1 Quiz 1 True-False...

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