Sonoma State UniversityDepartment of EconomicsECN 304Florence BouvetFall 2010Midterm 2-Answer KeyName (Please Print):_Scores:Part I:150Part II:150Total:1100Please Note:1.Succinct responses are strongly encouraged. Any erroneous or too muchirrelevant information will count against you. Therefore, you will not receivefullcredit ifyou provide acomplete correct answer but also include erroneous ortoo much irrelevant information. No credit will be given to answers that do notaddress the question.2.Show all your work. Make sure you show all equations used ineach calculation.Answers without supporting calculations will receive very little credit.3.For most questions, you are given a lot more space than you really need.When time iscalled, please stop work immediately.