EC 201 Fall 2009 Q4

EC 201 Fall 2009 Q4 - Principles of Economics EC 201 Cal...

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Principles of Economics EC 201 Cal Poly Pomona Dr. Bresnock Fall, 2009 Quiz 4 (15 points) Choose the best answer to each question and mark it on your answer form. Use Scantron 815-E for this purpose. You must also write in explanations for each answer choice and provide a brief reason as to why the answer is correct or incorrect. Spaces have been allocated on the quiz for the purpose of either writing in or typing in your explanations. You must turn in your quiz with the explanations and your scantron to this quiz on Mon, Oct. 26th at class lecture. Use the following to answer question 1: Q u a n t i t y Q u a n t i t y D e m a n d e d P r i c e S u p p l i e d 5 2 $ 5 0 7 3 6 2 4 5 6 2 7 2 4 0 5 1 8 2 3 5 4 2 9 2 3 0 3 3 1. If government set a maximum price of $45 in the above market: A) a shortage of 21 units would arise. B) a surplus of 21 units would arise. C) a surplus of 40 units would arise. D) neither a shortage nor a surplus would arise. A) B) C) D) 2. A price floor means that: A) inflation is severe in this particular market. B) sellers are artificially restricting supply to raise price. C) government is imposing a legal price that is below the equilibrium price. D) government is imposing a legal price that is above the equilibrium price. A) B) C) D)
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3. Other things equal, the shortage associated with a price ceiling will be greater the: A) smaller the elasticity of both demand and supply. B)
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This note was uploaded on 06/04/2010 for the course ECON 201 taught by Professor Dr.jaques during the Fall '08 term at Cal Poly Pomona.

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EC 201 Fall 2009 Q4 - Principles of Economics EC 201 Cal...

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