week2_ps - Principles of Economics Problem Set for Week 2...

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Principles of Economics Problem Set for Week 2 Due: online 10pm Mar.9, Tuesday I. Choose one answer that fits the best. (4 points each for questions 1-12) 1. Rank the 4 market types from most to least number of firms. a. Monopoly, perfect competitive, monopolistic competitive, oligopoly. b. Perfect competitive, oligopoly, monopolistic competitive, monopoly. c. Monopoly, oligopoly, monopolistic competitive, perfect competitive. d. Perfect competitive, monopolistic competitive, oligopoly, monopoly. 2. When quantity demanded has increased at every price, it might be because a. the number of buyers in the market has decreased. b. income has increased and this good is an inferior good. c. the consumer prefers another good more than this good. d. the price of a substitute good has increased. 3. Suppose that a decrease in the price of X results in less of good Y sold. This would mean that X and Y are a. complementary goods. b. normal goods. c. inferior goods. d. substitute goods. 4. Recent forest fires in the western states are expected to cause the price of lumber to rise in the next 6 months. As a result we can expect the supply of lumber to a. fall in 6 months, but not now. b. increase in 6 months when the price goes up. c. fall now. d. increase now to meet as much demand as possible. 5. Suppose roses are currently selling for $40.00 per dozen. The equilibrium price of roses is $30.00 per dozen. We would expect a a. shortage to exist and the market price of roses to increase.
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This note was uploaded on 04/23/2010 for the course ECONOMICS 2312 taught by Professor William during the Spring '09 term at 東京大学.

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week2_ps - Principles of Economics Problem Set for Week 2...

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