Class_practice_set_2_September_27,_2010_revised - Copy

Class_practice_set_2_September_27,_2010_revised - Copy -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
W1105- Principles of Economics, Fall,  2010 Professor Padma Desai 417 IAB Practice Set 2 Professor Desai will discuss the questions in the class on Monday, September 27 at the start of the lectue. Please carry a copy with you to the lecture WITHOUT FAIL 1) At a price of $20, a store can sell 24 picture frames a day. At a price of $18 the store can sell 33 picture frames a day. Using the midpoint formula, the price elasticity of demand is : a) 9.09 b) 0.33 c) 3.75 d) -3.0 2) A _______ line is a perfectly inelastic demand curve a) negatively sloped b) positively sloped c) horizontal d) vertical 3) Cross-price elasticity of demand measures the response in the a) quantity of one good demanded when the quantity demanded of another good changes b) quantity of one good demanded to a change in the price of another good c) income of consumers to the change in the price of goods d) price of a good to a change in the quantity of another good demanded 4) If the owner of an ice cream store on Amsterdam Avenue charges $1.20 for an ice
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Class_practice_set_2_September_27,_2010_revised - Copy -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online