Econ 103, Homework 1
1. Suppose a country produces two goods: corn (measured in bushels) and trucks. The
table below shows the output of each good that is possible for this country.
Extra Homework 2 - Solutions
I. Multiple choice questions.
1. Mallory decides to spend three hours working overtime rather than watching a video with
her friends. She earns $8 an hour. Her opportunity cost of working is
a. the $24 she earns worki
ECO 103 Homework 2 Solutions
1. Briefly explain whether each of the following would cause a movement along the demand
curve for Mc Donalds Big Mac hamburgers or a shift of the demand curve:
a. the price of Burger Kings Whopper declines Shift of the demand
ECO 103, Homework 3 Solutions
1. Suppose that business travelers and vacationers have the following demand for airline tickets
from New York to Boston:
Econ 103, Homework 4
1. Chapter 6, Problem 3, page 132
a.The equilibrium price of Frisbees is $8 and the equilibrium quantity is six million Frisbees.
b. With a price floor of $10, the new market price is $10 because the price floor is binding.
Econ 103, Homework 4-extra problems Solutions
1. Chapter 6, Problem 5, page 132
Reducing the payroll tax paid by firms and using part of the extra revenue to reduce the payroll
tax paid by workers would not make workers better off, because the division of
Econ 103, Homework 5
1. Chapter 8, problem 1, page 173
Figure below illustrates the market for pizza. The equilibrium price is P1, the equilibrium
quantity is Q1, consumer surplus is area A + B + C, and producer surplus is area D + E + F. There is n
Econ 103, Homework 5_Extra Credit_Solutions33
1. Chapter 8, problem 3, page 173
With very elastic supply and very inelastic demand, the burden of the tax on rubber bands will be borne
largely by buyers. As Figure 1 shows, consumer surplus declines cons
Practice problems for the 1st midterm exam - SOLUTIONS
1. A circular-flow diagram is a model that
a. helps to explain how participants in the economy interact with one another.
b. helps to explain how the economy is organized.
c. incorporates all