1 Brigham Young University Department of Economics Economics 110 – Principles of Economics Professor Kerk Phillips – Spring Term 2009, section 1 Final Exam key 6/17 – 6/18 Testing Center This test is multiple choice, fill in your answers on the answer sheet and do not write on this exam. It is closed book and closed notes. There is no time limit and you may use calculators; either those provided by the testing center or your own. Read all questions carefully before answering. There are 50 questions and 11 pages to this exam. 1. Suppose that at a price of $4.50, Cougar Burgers sells 11,000 cheeseburger per week. Then, when it rises to $5.50, 9000 cheeseburgers per week are sold. By the midpoint method, the price elasticity of demand for cheeseburgers is: a) -.25 b) -.50 c) -.80 d) -1.00 (-2000/10,000)/($1/$5) e) none of the above 2. For substitute goods, an increase in the price of good A, all else equal, will cause price in the market for good B to ___, and quantity exchanged to ___. 3. The inelastic portion of a straight-line (also called linear) demand curve is… 4. Which of the following factors would tend to make the price elasticity of demand LESS elastic?
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