Take Home Exam #2 - Answer Key.
ECON 500 Summer 2004.
1)
While standing in line at your favourite movie theatre, you hear someone behind
you say: I like popcorn, but Im not buying any because it isnt worth the high
price. Letting x1 = (buckets of popcorn)
Economics 500 Examination 1 Fall 2005
1. Tracy and Salif devote each workday to producing either telephones or pizzas. On any given day Tracy can produce either 5 telephones or 20 pizzas, while Salif can produce either 20 telephones or 10 pizzas. Suppose
Economics 500
Examination 2 Fall 2005
1.
Consider a market with linear demand as illustrated below:
$
12
Demand
8
4
Q
0
0
500
1,000
1,500
a)
Is demand elastic, inelastic, or unit elastic at a price of p = 5 ? Explain.
(6 points)
b)
Would an increase price
Economics 500
Examination 1 Fall 2005
1.
Tracy and Salif devote each workday to producing either telephones or pizzas. On any
given day Tracy can produce either 5 telephones or 20 pizzas, while Salif can produce
either 20 telephones or 10 pizzas. Suppose
Economics 500
Examination 2 Fall 2005
1.
A. Key
Consider a market with linear demand as illustrated below:
$
12
Demand
8
4
Q
0
0
a)
500
1,000
1,500
Is demand elastic, inelastic, or unit elastic at a price of p = 5 ? Explain.
(6 points)
For a linear demand
ECON 500
Examination 2 - Spring 2005
1.
While shopping in the produce section of Albertsons you overhear someone say:
I dont like broccoli. In fact, I would have to be paid a positive amount of
money to be willing to increase my consumption of broccoli! L
ECON 500
Examination 3 - Spring 2005
1)
Does the production function F ( K , L) = 4 K + L2 exhibit Increasing, Decreasing,
or Constant Returns to Scale? Clearly explain. (10 points)
(
)
(
)
F (K , L) = 4K + (L) 2 = 4 K + L2 while F ( K , L) = 4 K + L2 .
F
ECON 500
Examination 2 - Spring 2005
1.
A. Key
While shopping in the produce section of Albertsons you overhear someone say:
I dont like broccoli. In fact, I would have to be paid a positive amount of
money to be willing to increase my consumption of broc
ECON 500
Examination 3 - Spring 2005
1)
Does the production function F ( K , L) = 4 K + L2 exhibit Increasing, Decreasing,
or Constant Returns to Scale? Clearly explain. (10 points)
2)
David enjoys eating hotdogs. As the price of a package of hotdogs decr
Economics 500 Final Examination Fall 2005
1. The graph below illustrates Supply and Demand in the market for socks in Los Angeles.
$
Supply
4.75 Demand 0 0 2,500 Q
The members of the city council have decided that $4.75 is too much for consumer to pay for
ECON 500 Fall 2004. Exam #1.
1. Suppose you have won $100 in a football pool. You are deciding between the following two options: I. II. spending the money now on a nice dinner for two at a fancy seafood restaurant (which would cost exactly $100) putting
ECON 500 Fall 2004.
Exam #2.
1)
While standing in line at your favourite movie theatre, you hear someone behind
you say: I like popcorn, but Im not buying any because it isnt worth the high
price. Letting x1 = (buckets of popcorn) and x 2 = (dollars spent
Exam #1. ECON 500 Spring 2004.
1. The company you manage has already invested $400,000 in developing a new product, but the development is not quite finished. At a recent meeting, your salesperson reports that the introduction of competing products has re
Take Home Exam #3 Answer Key. ECON 500 Summer 2004.
1) Suppose that under current market conditions, the price elasticity of demand for oranges is p = .34 , while the income elasticity of demand for oranges is
I = .58 .
a. Would an increase in the price
ECON 500 Fall 2004. Exam #1 - Answer Key.
1. Suppose you have won $100 in a football pool. You are deciding between the following two options: I. II. spending the money now on a nice dinner for two at a fancy seafood restaurant (which would cost exactly $
Take Home Exam #1. ECON 500 Summer 2004.
1. The company you manage has already invested $50,000 in developing a new product, but the development is not quite finished. Suppose it would cost you an additional $40,000 to finish development and make the prod
Exam #2. ECON 500 Spring 2004.
1. Consider a consumer with monotonic preferences. Consider the following three consumption bundles: A = (5,8) , B = (6,10) , and C = (25,9) . Answer the following questions based upon only this information. a. How does this
Exam #1 Answer Key. ECON 500 Spring 2004.
1. The company you manage has already invested $400,000 in developing a new product, but the development is not quite finished. At a recent meeting, your salesperson reports that the introduction of competing prod
Exam #2.
ECON 500 Spring 2004.
1.
Consider a consumer with monotonic preferences. Consider the following three
consumption bundles: A = (5,8) , B = (6,10) , and C = (25,9) . Answer the
following questions based upon only this information.
a.
How does this
ECON 500 Fall 2004.
Exam #2 Answer Key.
1)
While standing in line at your favourite movie theatre, you hear someone behind
you say: I like popcorn, but Im not buying any because it isnt worth the high
price. Letting x1 = (buckets of popcorn) and x 2 = (do
ECON 500 Final Examination - Spring 2005
1. Carl and Dave devote each workday to harvesting apples or bananas. In any given day Carl can harvest either 100 apples or 200 bananas, while Dave can harvest either 400 apples or 300 bananas. Suppose that trade