Economics 201, Section 002: TakeHome Test
(5% of the course mark)
Professor J. Cuenca
Spring 2011
This TakeHome 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'
This is the end of the preview. Sign up
to
access the rest of the document.
This note was uploaded on 10/02/2011 for the course ECON 201 taught by Professor Vandewaal during the Spring '09 term at Waterloo.
 Spring '09
 VANDEWAAL
 Economics

Click to edit the document details