Econ2030 Test1 pg2

Econ2030 Test1 pg2 - 07 Suppose Helena a rational consumer...

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Unformatted text preview: 07. Suppose Helena, a rational consumer, would be Willing to pay $50 for a ticket to Traviata (opera) , but not $60. This implies that the benefit Helena receives from going to see Traviata onstage is a. greater than $60. b. greater than $50 but less than $60. ((9 less than or equal to $60. (1. greater than or equal to $50 but less than $60. ~8. If both supply and demand increase simultaneously, the new equilibrium price is ' and the new equilibrium quantity is . 1x 5 $9 a. lower; lower _ indeterminate c. indeterminate; higher (I. indeterminate; lower @figher; indeterminate 9. Everyone in the neighborhood has been cOmplaining about the deteriorating condition of the park, but nobody has cleaned it up. Why not? a. There is an excess demand for parks in the neighborhood. b. There is an excess supply of parks in the neighborhood. 0. If you totaled everyone's reservation prices to clean the park, it would not be enough to pay thecost of cleaning it. we single person' s reservation price to clean the park makes it worth cleaning it. 5.Park_ maintenance is not an economic problem lg 10. A decrease 1n the demand for bananas With no concurrent change 1n the supply of bananas will result in a equilibrium price and a(n) equilibrium quantity. 4 a. h1gher; lower {Iv S 3-? @wer c. h1gher unchanged d. higher; higher .lower; higher 11. In a free market, if the price of a good is below the equilibrium price, then a. government needs to set a higher price. prliers, dissatisfied with growing inventories, will raise the price. ders, to acquire the good, will bid the price higher. . ovemment needs to set a lower price. ~e.—-suppliers, dissatisfied with growing inventories, will lower the price. .The elasticity of supply IS when longer time periods are considered. V ..... =c-astic _ . . more inelastic c. more unit elastic d. unknown ...
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