Ex2AF09 - 1 ECONOMICS 202 EXAM 2A FALL 2009 1. Assume the...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 ECONOMICS 202 – EXAM 2A – FALL 2009 1. Assume the price for good Z fell from $11 to $9 and then the number of units sold increased from 5 to 7. Therefore, between $11 and $9 |Ed| = : (use midpoints formula) a. 0.45; b.0.60; c. 1.28; d. 1.66; e. 2.2 2. Consider again your calculation of |Ed| for good Z in question #1. If the demand curve for Z is a straight line, |Ed| for good Z between prices 20 and 22, will be ______ between prices 9 & 11. a. greater than; b. less than; c. equal to; d. not enough information to know how |Ed| would change. 3. The reason for using the midpoints formula to calculate |Ed| is because if we did not,: a. the sign of Ed would be positive if the price were rising but negative if the price were falling. b. we could not determine whether goods are complements or substitutes c. we could not determine if the goods in question are normal or inferior d. we could not identify the price that separates the elastic from the inelastic range of the demand curve. e. none above 4. When we measure |Ed|, Es, Edxy and Esxy were are measuring a ____, ____, ____, ____, the relevant functions, respectively. a. movement along, shift of, shift of, shift of b. movement along, movement along, shift of, shift of c. movement along, movement along, movement along, shift of d. shift of, movement along, movement along, shift of d. shift of, shift of, shift of, movement along. 5. My barber says he has to raise his prices to increase his revenues. I have told him that instead he should lower his prices if he wants more revenue. Thus, between the relevant prices my barber believes |Ed| is _____ while I believe |Ed| is ______. a. > 1, < 1; b. < 1, > 1; c. = 1, <1; d. < 1, = 1; e. > 1, = 1 6. In the example discussed in class about the Canadian government’s attempt to reduce cigarette smoking by raising the price of cigarettes, the results of the program revealed that |Ed| among teenagers was greater than among adults. The likely reason given for this was that: a. adults were able to find more or better substitutes that were teenagers. b. addiction was more intense among teenagers than adults c. adults apparently react more slowly to a change in price than do teenagers.
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/13/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.

Page1 / 5

Ex2AF09 - 1 ECONOMICS 202 EXAM 2A FALL 2009 1. Assume the...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online