ECON5103
Chapter 2 Practice Set Answer Key
Williams
1. Over the past few years the price of a gallon of gasoline in the U.S. has risen a great deal. This increase in gasoline prices has
affected the market for subcompact cars in the U.S. (These are cars t
ECON5103
Chapter 2 Practice Set Due by June 12 at 11:55PM
Williams
You must upload your answers by 11:55PM June 12 to receive an Answer Key!
1. Over the past few years the price of a gallon of gasoline in the U.S. has fallen a great deal. This decrease in
ECON5103
Chapter 3 Practice Set 3
Williams
Answer key
1. The demand curve for product X is given by Q = 5000
5P - .1Pz where Pz = 50
a. Calculate the (own) price elasticity of demand when P= $100. Is demand elastic or inelastic at this price? What would
Airielle Mitchell
Elastic and Inferior
06/16/16
Reading about the three types of elasticity, I realized First Convenience Bank is noticeably elastic. The
cost of price can hardly change without an obvious influence the quantity receives from the price.
Cu
ECON5103
Chapter 1 Practice Set Due by June 12 at 11:55PM Central Time
Williams
You must upload your answers by 11:55PM June 12 if you wish to receive an answer key!
Late submissions receive no answer key.
(Question 3 is adapted from textbook chapter 1)
1
(28 points)
In a market, the demand equation is P = 100 2Q and the supply equation is P = 10 + Q. Calculate equilibrium
values for:
a) quantity
b) price
c) total (sales) revenue
d) (own) price elasticity of demand
(You must show your calculations to recei
ECON5103
Chapter 4 Practice Set
Williams
Answer Key
1. Libby has this budget constraint: 5000 = 20X + 50Y
a. Libby has bought 100 units of product X. Calculate how many units of product Y that she has bought. (Assume that
she is not saving any of her inco
ECON5103
Chapter 5 Practice Set
Williams
Answer Key
1. A firm has this linear production function: Q = 5K + 2L
Each unit of labor costs $10 to employ and each unit of capital cost $8 to employ.
The firm is employing 100 units of labor and 200 units of cap