hard_micro_questions

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

This preview shows pages 1–4. Sign up to view the full content.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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.
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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## 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.

### Page1 / 13

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

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online