EXAM2answers - 31. profits over and above what an owner...

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ECON 151 Answers to 2nd Exam Fall 2007 1. inelastic 2. the demand curve is vertical 3. indicates that consumers make relatively large quantity adjustments to a price change 4. 1.25 5. expenditures will increase 6. none of the above 7. inelastic 8. it = s elastic 9. D2 10. D1 11. 1.20 12. false 13. true 14. inelastic 15. perfectly elastic 16. elastic 17. K 18. M 19. J 20. a highly elastic market supply curve 21. 0.8 22. cause a small increase in equilibrium quantity and a big increase in price 23. false 24. cardiovascular (heart) surgeons 25. more elastic 26. Pc 27. Pc 28. a shortage of Q3 - Q1 29. true 30. gasoline price controls implemented during the 1970s and early 1980s
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Unformatted text preview: 31. profits over and above what an owner would have to receive in order to compensate him/her. ..... 32. true 33. as additional units of a variable input are employed with a set of fixed inputs, beyond some point output will increase by smaller and smaller amounts 34. a normal profit 35. false 36. false 37. Above 38. rapidly rising average variable cost 39. average fixed costs 40. above P2 41. P2 42. falling LRAC 43. the scale of plant at which LRAC stops declining 44. larger plant sizes result in higher ATC 45. false...
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This note was uploaded on 04/07/2008 for the course ECON 151 taught by Professor Harris during the Fall '07 term at University of Delaware.

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