Test3_practicequestions(1)

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Unformatted text preview: ot;327&#!:&('/#&! 9 The!&'()%!#&=*"20!>3*$*"+! C<$/$208!!!9 *+,-.%!/$(0/is at !point ournot equilibrium !1$% .%&21+(3!*-321+(3/!*(.!10(!4+55&!/$(4/!+3!&!/6&77!+/(7&1%8!1(039! !"!! ;2&0$*"+! #$% A) :(-.3(1!%;-+7+'.+-6!+/!&1!4(+31! #$%!a. !B$!! &'()*+&!,)&-.),!+A)4.,!0'04.!&+C+5)+!2/5),!01+!,)2!'3!4..!24&?/54.!*',09! % B ) b. :5,;+&<!!! ! !>1+!,)2!'3!4..!24&?/54.!*',0!+A)4.,!0'04.!C4&/46.+!*',09!>'04.!&+C+5)+!2/5),!0'04.! <"!! >&)+9 &9 C) c. C4&/46.+!*',0!+A)4.,!-&'()*+&!,)&-.),9! ="9#"327&# 1".*78!!!!! 9! !:&('/#&! D) d.' ;2&0$*"+!<$/$208!!! #&=*"20!>3*$*"+! :"!! 9! 9 2 !D$!! 1+5!!!!01+!-&'3/0!4!3/&2!+4&5,!+A)4.!0'!01+!-&'()*+&!,)&-.),F!G@-.4/59! E >" /, 9! 8 :5,;+&<!!! %&'3/0!+A)4.,!-&'()*+&!,)&-.),!;1+5!01+!3/&2!14,!5'!3/@+(!*',0,9!%&'()*+&!,)&-.),!*45! <3/0%.?01')?10!'3!4,!01+!?4/5,!3&'2!0&4(+9!H5!01+!,1'&0!&)5I!/3!01+!3/&2!-&'()*+,!457! = Short !answer 6+ !!! ! *',0, 2/5),!3/@+( !"#$%&nn"()*"++4&5,e-&'3/0!+A)4.!0'!&+C+5)+per mC4&/46.+on c!igarettes!*',0,9!H3!01+! price is $1 per pack. Draw a ' and Bill ! ! ,"-./ 1. A!!!')0-)0I!/0! !!(';5Iach spend $30 !2/5),! onth !!,)&-.),!+A)4.,!01+!when the 3/&2!,1)0, !/0!.',+,!01+!3/@+(!*',0,9!>1+!-&'()*+& -&'3/0!3&'2! 0(.1+$"*!2+3+(1&!!!!01+!hat t!he.',,!3&'2!5'0!0&4(/5?I!&+C+5)+!ess e!lastic !demand! will suffer the greater loss 4 graph to illustrate t -&'3/0 '&! consumer with the l 2/5), C4&/46.+ *',0,9!H3!5' 0&4(/5?!2/5), ).5$"(1!6-$+$"*! 3/@+(!*',0, +@/,0I!01+5!-&'3/0!;/..!+A)4.!01+! of cigarettes of consumer s!urplus when the price-&'()*+&!,)&-.),9! increases. Explain and label the figure. 1".*78!!! #"327&#!:&('/#&! 9 @"!! ;2&0$*"+!<$/$208!!!9!#&=*"20!>3*$*"+! #$%!&'()% *+,-.%!/$(0/!1$%!.%&21+(3!*-321+(3/!*(.!10(!4+55&!/$(4/!+3!&!/6&77!+/(7&1%8!1(039! 2. :(77-/+(3!0(-78!.%/-71!+3! <"!! &2$!*+.6!4.(8-2+3,!A!!4+55&/9! % ="!! &2$!*+.6!4.(8-2+3,!BC!4+55&/9! % :"!! $%!*+.6/!/47+11+3,!1$%!4.(8-21+(3!(*!DCC!!C!4+55&/9! 1 >"!! +.6!<!6(3(4(7+5+3,!1$%!6&.E%1!'F!/%77+3,!!C!4+55&/9! * <3/0%.?!!! ! : !"#$%&!!! "()*"+!,"-./! ' 0(.1+$"*!2+3+(1&!!! .5$1.-! 7 ! G"!! $%!&'()%!*+,-.%!/$(0/!1$%!.%&21+(3!*-321+(3/!*(.!10(!4+55&!/$(4/!+3!&!/6&77!+/(7&1%8!1(039! # #$%!4%.*%21!2(64%1+1+)%!(-12(6%!+/!1$&1! <"!! &2$!*+.6!4.(8-2%/!BC!4+55&/9! % ="!! &2$!*+.6!4.(8-2%/!!C!4+55&/9! % :"!! $% he market !1$%!4.(8-21+(3!(*!!ACC! shown i 1 Suppose !t*+.6/!/47+1supply curve for wheat is4+55&/9! n the above figure. Calculate the !J$!! )--...
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This note was uploaded on 09/29/2013 for the course ECON 201 taught by Professor Maxli during the Winter '13 term at Massey Palmerston North.

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