Review Multiple Q_mid2

Review Multiple Q_mid2 - EC116 REVIEW MULTIPLE QUESTIONS...

Info iconThis preview shows pages 1–16. Sign up to view the full content.

View Full Document Right Arrow Icon
EC116 REVIEW MULTIPLE QUESTIONS FOR MIDTERM II MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question.  Refer to the information provided in Figure 5.1 below to answer the questions that follow.  Figure 5.1  1) 
Background image of page 1

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

View Full DocumentRight Arrow Icon
Refer to  Figure  5.1. The  demand  for tickets  is  
Background image of page 2
1) 
Background image of page 3

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

View Full DocumentRight Arrow Icon
_______  A) 
Background image of page 4
 unitarily  elastic.  
Background image of page 5

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

View Full DocumentRight Arrow Icon
B)   in com
Background image of page 6
 perfectly  inelastic.  
Background image of page 7

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

View Full DocumentRight Arrow Icon
D)   pe rfect   Refer to the information  provided in Figure 5.2 below  to answer the questions that  follow.  Figure 5.2  2) 
Background image of page 8
Refer to  Figure  5.2. At  Point C  the price  elasticity  of  demand is  - 1. Along  line  segment  B C of the  demand  curve, the  demand is 
Background image of page 9

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

View Full DocumentRight Arrow Icon
2)  ____ ___    u n i t a ril el as tic .    in elastic.  
Background image of page 10
 elastic.   D) 
Background image of page 11

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

View Full DocumentRight Arrow Icon
 either elastic or  inelastic, depending on whether price increases or decreases.     3) 
Background image of page 12
A firm is  currently  producing  in the  inelastic  portion of  its  demand  curve.  What  course of  action  should  you  recomme nd to this  firm  assuming  it wants to  raise  revenue?  
Background image of page 13

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

View Full DocumentRight Arrow Icon
3)  ____ ___    C o n t i n u e   p r o d u c i n g   a t   t h e   c u r r e n t   o u t p u t   l e v e l ,  b ec au se  th fir wi ll  m ax im iz its  tot al  re ve nu by  pr od uc in in  th in el as tic  po rti on  of  its  de m an cu rv e.   R ed uc pri ce, because if demand  is inelastic and price is  reduced, total revenue  will increase. 
Background image of page 14
Continue selling at the same price, but increase the number of units it produces.   D) 
Background image of page 15

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

View Full DocumentRight Arrow Icon
Image of page 16
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/07/2008 for the course ECN 116 taught by Professor Germiniasi during the Spring '08 term at Northeastern.

Page1 / 66

Review Multiple Q_mid2 - EC116 REVIEW MULTIPLE QUESTIONS...

This preview shows document pages 1 - 16. Sign up to view the full document.

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