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Week 2: Demand and Supply in a
Competitive Market
NEWS FLASHES!
- Our first midterm test will be written on
Saturday, October 17th (less than 4 weeks
away)
- More parts of Course Handbook are up
on the UTSC Intranet
- Tutorials start this weekschedule i

ECMA04H - VERSION A
Sketchy Solutions to Second Term Test, written on November 17, 2006
These are the answers to VERSION A.
Q1: D
The shut down price = minAVC; AVC = TVC/q = .1q+6+14.4/q, which will
reach its minimum when dAVC/dq=0; dAVC/dq = .1 - 14.4q-2

ECMA04H
First Term Test - October 20, 2006
Time: 90 minutes
Professors Michael Krashinsky and Gordon Cleveland
Version A
Instructions: PLEASE READ CAREFULLY
1. On the Scantron answer sheet, you must
PRINT your last name and first name
enter your student

ECMA04F
First Term Test - October 14, 2005
Profs. Michael Krashinsky and Gordon Cleveland
PRINT CLEARLY
NAME:
Time: 90 minutes
Version 1
_ _
(Last name)
(First name)
STUDENT NUMBER:
_
TUTORIAL TIME:
_
(Write down the time and day of the tutorial you regul

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ECMA04H
First Term Test - October 25, 2008
Professor Gordon Cleveland
Time: 90 minutes
Version A
Instructions: PLEASE READ CAREFULLY
1. On the Scantron answer sheet, you must
PRINT your last name and first name
enter your student number as the identif

ECMA04H
Second Term Test - November 15, 2008 Time: 90 minutes
Professor Gordon Cleveland
Version A
Instructions: PLEASE READ CAREFULLY
1. On the Scantron answer sheet, you must
PRINT your last name and first name
enter your student number as the identif

ECMA04H - VERSION A
Sketchy Solutions to First Term Test, written on October 20, 2006
These are the answers to VERSION A.
Q1: C
On the PPF, if X = 7, Y = 20 - 12.8 = 7.2, so the point (7,7.4) is
unattainable
Q2: E
opportunity cost of X = -dY/dX = .4(1+X);

ECMA04F
First Term Test - October 15, 2004
Profs. Michael Krashinsky and Gordon Cleveland
PRINT CLEARLY
NAME:
Time: 90 minutes
Version 2
_ _
(Last name)
(First name)
STUDENT NUMBER:
_
TUTORIAL TIME:
_
(Write down the time and day of the tutorial you regul

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ECMA04H
First Term Test - October 25, 2008
Professor Gordon Cleveland
Time: 90 minutes
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At 12 units of X, the opportunity cost of Y is 2/3rds. The correc

ECMA04F - October 14, 2005
Briefly Explained Answers to First Term Test
There were three versions of the exam. All were labeled Version 1". To distinguish the three
versions, you should look at the professors names.
Correct Answers
Version 1 (Profs. Micha

ECMA04H
Final Exam, December 2006
Time: 3 hours
Professors Michael Krashinsky and Gordon Cleveland
THIS IS VERSION A OF THE EXAM - MAKE SURE TO INDICATE THIS
VERSION ON YOUR SCANTRON SHEET, AND ON YOUR ANSWER
BOOKLET, BOTH WHICH ARE TO BE TURNED IN AT THE

ECMA04H
First Term Test - October 26, 2007
Time: 90 minutes
Professors Michael Krashinsky and Gordon Cleveland
Version A
Instructions: PLEASE READ CAREFULLY
1. On the Scantron answer sheet, you must
PRINT your last name and first name
enter your student

ECMA04H
Sketchy Solutions to First Term Test, written on October 15, 2004
Please note that there were 3 different versions of the exam, with both questions and
answers scrambled, so answer key varies between exams.
You can tell which exam you had be looki

ECMA04H - VERSION A
Sketchy Solutions to First Term Test, written on October 26, 2007
These are the answers to VERSION A.
Q1:
Q2:
Q3:
Q4:
B
E
D
H
On the PPF, if X = 10, Y = 30 - 3/2 = 28.5, so the point (10,28) is inside the PPF
opportunity cost of X = -d

ECMA04H
Second Term Test - November 17, 2006
Professors Michael Krashinsky and Gordon Cleveland
Time: 90 minutes
Version A
Instructions: PLEASE READ CAREFULLY
1. On the Scantron answer sheet, you must
PRINT your last name and first name
enter your stude

ECMA04H
Second Term Test - November 16, 2007
Professors Michael Krashinsky and Gordon Cleveland
Time: 90 minutes
Version A
Instructions: PLEASE READ CAREFULLY
1. On the Scantron answer sheet, you must
PRINT your last name and first name
enter your stude

ECMA04F
Second Term Test - November 11, 2005
Time: 90 minutes
Profs. Michael Krashinsky and Gordon Cleveland
PRINT CLEARLY
NAME:
_ _
(Last name)
(First name)
STUDENT NUMBER:
_
TUTORIAL TIME:
_
(Write down the time and day of the tutorial you regularly att

ECMA04F
Second Term Test - November 5, 2004
Profs. Michael Krashinsky and Gordon Cleveland
PRINT CLEARLY
NAME:
Time: 90 minutes
_ _
(Last name)
(First name)
STUDENT NUMBER:
_
TUTORIAL TIME:
_
(Write down the time and day of the tutorial you regularly atte

ECONOMICS A04H
Second Test, November 7, 2003
Time: 105 minutes
Professors Gordon Cleveland and Michael Krashinsky
NAME:_
(Last name) print clearly
(First name)
STUDENT NUMBER_
WHEN IS YOUR WEEKLY TUTORIAL?_
(Day)
(Time)
Only non-programmable calculators a

Answers Test #2 ECMA04H November 5, 2004
Version #1 (on front page: Profs. Michael Krashinsky and Gordon Cleveland)
1. The price of pears rises. Pears are a substitute in consumption for apples.
Therefore, the demand for apples shifts to the right. As a r

Answers to Second Test in ECMA04H
Version of test with date written as November 11, 2005
1. Demand is given by P = 60 - .05X. Supply is horizontal at P = 20.
Initial equilibrium is at P = 20, Q = 800. Government levies $4 tax so
that S + T is given by P =

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ECMA04H
Second Term Test November 15, 2008 Time: 90 minutes
Professor Gordon Cleveland
Version A
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The shut down price occurs at P = min AVC. AVC = .5q + 2 + 32q-1. At 8 units

Answers to Second Test, ECMA04H, November 7, 2003
1. If q = 10L1/3, then the marginal product of labour is dq/dL = 10 x 1/3 L-2/3. At L = 8, this is
10/12 = 0.833 or 5/6. The correct answer is (C).
2. The marginal cost per unit of output is given by the p

ECMA04H
Final Exam, December 2005
Time: 3 hours
Professors Michael Krashinsky and Gordon Cleveland
THIS IS VERSION #1 OF THE EXAM - MAKE SURE THIS
CORRESPONDS TO THE VERSION NUMBER ON THE BOTTOM OF
YOUR ANSWER SHEET.
INSTRUCTIONS
1. Remove this page. The

ECMA04H Week Eight
Finish up Perfect Competition
1. Algebra
2. Long-run equilibrium
Then: Monopoly
First.remember effects of increase in
Demand
1
Before:
Market Demand: P = 154 - .06Q
Total cost function of each PC firm:
TC = 3q2 + 10q + 432
FC = 384
The

Week 7 Perfect Competition
Perfect Competition the main model for
microeconomics
- the firm in SR
- the industry in SR
- the firm in LR
- the industry in LR
- the dynamics of SR and LR adjustments
to a shock how does equilibrium change
in SR and LR
- too

ECMA04H
Week 5
We will finish up Elasticity and Excess Burden of
an Excise Tax and then move on to
Production, Productivity and Costs
Production, productivity and costs
Basic objective.understand diminishing
marginal productivity and the shapes of typical