hard_micro_questions - Multiple Choice 1. In general, when...

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Multiple Choice 1. In general, when the demand curve shifts to the right and supply remains constant: Answer Selected Answer: quantity demanded will rise. Correct Answer: the equilibrium quantity will rise. 2. A surplus exists when: Answer quantity supplied exceeds quantity demanded. the equilibrium price is too low. supply is greater than demand. price is below the equilibrium value. 3. Use the following figure to answer the question. Compared to point A, at point B demand is: Answer Selected Answer: more price elastic. Correct Answer: equally elastic, as both points are on the same straight line. 4. In Australia, bananas are grown in Queensland and South Australia. A bad storm destroyed the banana plantations in Queensland, which caused the price of bananas produced in Adelaide to increase almost fivefold. The price elasticity of demand for bananas grown in Adelaide at a given price is now likely to be: Answer Selected Answer: more elastic. Correct Answer: more inelastic.
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5. Assume the price of petrol doubles tonight and remains at that price for the next two years. The price elasticity of demand for petrol measured tomorrow will be _________ when compared with the price elasticity of demand for petrol measured two years from now. more elastic larger in absolute value the same more inelastic 6. The demand for Toby Williams' concert is given by QD = 100 000 – 500P. To earn the maximum revenue, the producer of the concert should charge a price equal to: A. $1000 per ticket. B. $100 per ticket. C. $50 per ticket. D. $200 per ticket. 7. Rajiv has estimated that the additional benefit of writing 100 more lines of computer programming code is $10 and the additional cost is $6. He should: A) not write the code because it would not be a rational choice, nor would it be an optimal quantity B) write the code because it would be a rational choice and an optimal quantity C) write the code because it would be a rational choice but it is not an optimal quantity D) not write the code because it would not be a rational choice but it would be an optimal quantity 8. True or false: If the benefit from undertaking an action is positive, it should be undertaken: A) True B) False 9. In the competitive market model, the demand curve for a commodity will shift to the right if: (a) the price of the commodity rises (b) the price of the commodity falls (c) the price of a complement commodity falls (d) the price of a substitute commodity falls 10. Use the following table to answer the question. Fundraisers for What'sAMatterU Fundraising employees Total donations Average donations Total labour costs Average labour costs 1 $30 000 $8000 2 $42 426 $17 000 3 $17 321 $27 000 4 $60 000 $9500 5 $13 416 $50 000 The net benefit of hiring fundraisers is largest when ___________ employees are hired.
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11. The quantity demanded of a product per month decreases from 200 units to 120 units as a result of a rise in price from $30 to $34. The arc (average) elasticity of demand for this change is. (a) -0.8
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This note was uploaded on 10/20/2011 for the course COMMERCE 3502 taught by Professor All during the One '11 term at University of New South Wales.

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hard_micro_questions - Multiple Choice 1. In general, when...

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