201-tutorial-2

# 201-tutorial-2 - Econ 201 Tutorial #2 Date: Week of Sept....

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Econ 201 Tutorial #2 Date: Week of Sept. 27- Oct. 3, 2010 Coverage: Chapter 3 Demand, Supply and the Classical Marketplace I. Multiple Choice Questions: 1. Consider the following: Demand for x: P=60-2Qd Supply of x: P=32+5Qs a. The equilibrium price is P=54 and equilibrium quantity Q=5. b. The equilibrium price is P=53 and equilibrium quantity Q=4.5. c. The equilibrium price is P=52 and equilibrium quantity Q=4. d. The equilibrium price is P=51 and equilibrium quantity Q=3.5. e. The equilibrium price is P=50 and equilibrium quantity Q=3. 2. The demand is P = 12 - 3Q d , the supply is P = 2Qs, so the equilibrium price and quantity are \$__ and __ respectively. a. 6.67; 3.33 b. 2.4; 4.8 c. 4.8; 2.4 d. 20; 10 e. 10; 5 3. A technological improvement in the production process of compact disc players will lead to a a. fall in the price of CD players, and a leftward shift in the demand curve for compact discs. b. rise in the price of CD players. c. fall in the price of CD players, and a fall in the demand for CD players. d. fall in the price of CD players, and an increase in demand for records. e. fall in the price of CD players, and a leftward shift in the demand curve for tape players. 4. If A and B are complementary goods (in consumption) and the cost of an input used in producing A drops, then the price of a. B will rise but the price of A will fall. b. both A and B will rise. c. A will fall and the price of B will remain unchanged. d. both A and B will fall. e. B will fall but the price of A will rise. 5. Which one of the following would not shift the supply curve for good X to the right? a. A decrease in the price of Y , a substitute for the production of X . b. A reduction in the price of resources used in producing X . c. An improvement in technology affecting the production of X . d. An increase in the price of X . e. An increase in the price of Y , a complement in the production of X . 6. If the demand equation is P = 20 - 2Q d , and the supply equation is P = 5 + 1Q s , and the price is set equal to 12, there is an a. excess supply of 7 units. b. excess demand of 4 units. c.

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## This note was uploaded on 03/19/2012 for the course ECON 201 taught by Professor Ianirvine during the Fall '10 term at Concordia University Irvine.

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201-tutorial-2 - Econ 201 Tutorial #2 Date: Week of Sept....

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