Quiz 1 ans

Quiz 1 ans - *No =(0(2 2(b(i Indicate on the diagram...

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Quiz 1(ch.1 –ch. 5) Ans MCQ 1. D 2. D 3. A 4. B 5. D 6. C 7. C 8. B 9. A 10. C SQ 1. (a) It is the highest-valued option forgone. (2) (b) Since the science stream is less preferred than the business stream, a change from the option of the business stream to the option of the science stream would lower the opportunity cost. (3) 2. (a) Indicate on the diagram : - Area abP 1 P 2 = Gain ; Area bcQ 1 Q 2 = Loss (1) - Gain > Loss (1) Verbal elaboration : - inelastic demand for the tunnel service (1) - (P )and Q d (1) - percentage change in price > percentage change in quantity demanded
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Unformatted text preview: ***No % = (0)*** (2) 2. (b)(i) Indicate on the diagram : price (P 1 ) is below the equilibrium price (1) rightward shift of the demand curve (1) excess demand increases from a to b (1) Verbal elaboration : Cross Harbour Tunnel is a substitute of Western Harbour Tunnel (1) demand for Cross Harbour Tunnel service increases (1) (with a fixed price,) excess demand for the Cross Harbour Tunnel service would increase (1)...
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This note was uploaded on 11/03/2011 for the course ECON 101 taught by Professor Buddin during the Spring '08 term at UCLA.

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Quiz 1 ans - *No =(0(2 2(b(i Indicate on the diagram...

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