{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

First Midterm S07

First Midterm S07 - FIRST MIDTERM EXAMINATION(2 hours 100...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
FIRST MIDTERM EXAMINATION (2 hours, 100 points) Circle the name of your instructor: Gunning Inal Ozsoy Soligo NAME: __________________________________________________________ PLEDGE:_________________________________________________________ __________________________________________________________________ __________________________________________________________________ PART I: MULTIPLE CHOICE (3 pts each; 15 points in total) 1. Which of the following will lead to a shift in the demand for Hummer SUVs? I. A decrease in oil prices II. USA’s invasion of Iran III. An increase in the price of Hummers IV. An increase in the price of leather used to cover Hummers’ seats. (a) I and III (b) II and IV (c) I and IV (d) I and II (e) III only 2. If the supply of a good is perfectly elastic, then the burden of a one-dollar specific tax imposed on sellers 1
Background image of page 1

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

View Full Document Right Arrow Icon
3. On the right is given Bart’s monthly demand for candy when his allowance is $50 a month. Assume that Bart’s income elasticity of demand for candy is unitary along his demand curve. Which of the following diagrams shows the shift in his demand curve if his allowance is raised to $55 a month? 4. If the (inverse) supply of good X is given by the equation P = 10 + 2Q, then price has to increase by $___ for the quantity supplied to increase by 2 units. 5. Gisele has been going to the supermarket every week in the last year. The price of cheesecakes has been increasing over the year, and she kept buying one cheesecake every time she did her shopping. The price elasticity of Gisele’s weekly demand for cheesecakes is 2
Background image of page 2
PART II: TRUE OR FALSE, EXPLAIN (4 points each ; 16 points in total) Indicate whether the following statements are true or false, by circling the appropriate response. You will not receive full credit without an explanation, even though your answer is correct. 1. [TRUE / FALSE] The following graph shows the foreign and domestic supply curves and the domestic demand curve for oil.
Background image of page 3

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

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}