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ExamView Pro - exam2 - Name Class Date ID A Exam 2 Multiple...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Exam 2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. Use the following table of estimated price elasticities of demand to answer the questions that follow. Country Tobacco Dairy Meat Iran -0.70 -0.56 -0.51 Swizerland -0.27 -0.24 -0.22 Turkmenistan -1.14 -0.72 -0.65 United States -0.11 -0.10 -0.09 ____ 1. Suppose that the price of dairy increased in the US by 10%, which of the following would happen to the quantity demanded? a. Increase by 10% c. Decrease by 1% b. Decrease by 10% d. Remain unchanged Use the following list of elasticities for a variety of goods in the US to answer the questions that follow. Good Own-Price Cross-Price Ragu Pasta Sauce Spaghetti Sauce -0.90 N/A Prego Pasta Sauce -3.10 1.25 Newman’s Own Pasta Sauce -2.58 0.64 ____ 2. Which of the following is true? a. Demand for Spaghetti sauce is elastic c. Demand for spaghetti sauce is inelastic, but demand for Prego and Newman’s own pasta sauce is elastic. b. Demand for Ragu pasta sauce is inelastic d. Newman’s own and Ragu are complements
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Name: ________________________ ID: A 2 Suppose that the market for widgets is given by the following picture Widgets (thousands) 10 40 30 20 20 40 60 80 100 Demand 50 price 120 140 Supply ____ 3. Suppose that a tax equal to $15 is imposed on the market. What is the price that consumers will pay after the tax is imposed? a. 35 c. 45 b. 30 d. 20 ____ 4. Suppose that a tax of $15 is imposed in this market, how much revenue will the tax raise? a. 250 c. 600 b. 450 d. 800 ____ 5. Suppose that a tax of $15 is imposed in this market, how much dead-weight loss will this create? a.
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ExamView Pro - exam2 - Name Class Date ID A Exam 2 Multiple...

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