ECON201-midterm-actual answers

ECON201-midterm-actual answers - FACULTY OF COMMERCE AND...

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FACULTY OF COMMERCE AND ADMINISTRATION SCHOOL OF ECONOMICS AND FINANCE MID-TRIMESTER TEST, 2009 ECON 201: MICROECONOMICS INSTRUCTIONS: Duration of test: 50 minutes. Total marks: 100, 20 multiple choice questions @ 5 marks each. Pocket calculators can be used, but not notes or books. Credit will be given for the most appropriate answer only, not just the partially correct ones. Please fill in your student ID number and choice of answer for each question carefully on the separate one-page answer sheet. For any calculations, use the back of the question pages, or the margins or any empty space on the question pages. Only the answer sheet is to be returned at the of the test. There are SIX pages of questions – check that your set is complete.
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Question 1 If the price of automobiles were to decrease substantially, the demand curve for public transportation would most likely A) shift rightward. B) shift leftward. C) remain unchanged while quantity demanded would increase. D) remain unchanged while quantity demanded would decrease. Question 2 Suppose the inverse demand curve for a good is expressed as Q = 50 – 2 p . If the good currently sells for $3, then the price elasticity of demand is A) –3 (2/50). B) –2 (3/44). C) –2 (50/3). D) –3 (44/2). Question 3 The supply curve is given by Q = 5 p. At the current equilibrium price the price elasticity of supply equals A) 0. B)
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ECON201-midterm-actual answers - FACULTY OF COMMERCE AND...

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