Economics 201, Section 002: Take-Home Test (5% of the course mark) Professor J. Cuenca Spring 2011 This Take-Home Test is due in class on Tuesday, May 31. It should be submitted in stapled sheets of paper with the student's LAST NAME ONLY (IN CAPITALS) and initials on the top right corner of the FIRST PAGE; and the student's number on the top right corner of each subsequent page. Only one of the questions will be marked. Zero marks will be given unless every single step is clearly indicated. Students who find the problems difficult are strongly advised to seek help from the Professor during his office hours. 1. Suppose the demand equation for artichokes (X) is given by X = 120 - 4P. a. What is the (point) price elasticity of demand if the price of artichokes is P = $10? Answers involving calculus will not be accepted. You must use the alternative geometrical formula supplied in class and in the Lecture Notes (i.e., a ratio of two segments) b. Suppose that the price of artichokes is slightly increased from $10. Will the consumers'
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This note was uploaded on 10/02/2011 for the course ECON 201 taught by Professor Vandewaal during the Spring '09 term at Waterloo.