1. Suppose Joel decides to go fishing at Lake Veronica on his day off from work but he
faces a choice he can Fish the north south east or west side of the lake he expected
catch for the day is as follows 1 fish on the northside 4 fish on the southside 7 fish on
the Eastside 2 fish on the west side
a) – 6 fishes
b) -3 fishes
c) 2 fishes
d) 3 fishes
e) 4 fishes
2. In this situation above what is Joel’s opportunity cost of fishing on the west side of
the lake
a) 1 fish
b) 2 fish
c) 4 fish
d) 7 fish
e) 12 fish
3. Suppose at a given point in time a market is in equilibrium. an increase in the
number of sellers in the market causes market supply to ____, resulting in a ___ that
will be illuminated as the market price of the good ____ everything held constant
a) Decrease, surplus, decrease
b) Decrease , shortage, increase
c) Increase, surplus, increase
d) Increase, surplus, decrease
e) Increase, shortage decrease
4. Suppose both buyers and sellers expect the world price of oil to increase
next week everything else held constant the demand of oil will ____ and the
equilibrium price of oil will ____ TODAY
a) Decrease, increase
b) Increase , decrease
c) Increase, increase
d) Decrease, decrease
Suppose an online retailer of batteries has the following pricing scheme with free shipping
for it’s 315 silver oxide button cell battery
Quantity Purchased Price Per Battery
1-4 $3.00
5-24 $1.50
25 or more $1.00
faces a choice he can Fish the north south east or west side of the lake he expected
catch for the day is as follows 1 fish on the northside 4 fish on the southside 7 fish on
the Eastside 2 fish on the west side
a) – 6 fishes
b) -3 fishes
c) 2 fishes
d) 3 fishes
e) 4 fishes
2. In this situation above what is Joel’s opportunity cost of fishing on the west side of
the lake
a) 1 fish
b) 2 fish
c) 4 fish
d) 7 fish
e) 12 fish
3. Suppose at a given point in time a market is in equilibrium. an increase in the
number of sellers in the market causes market supply to ____, resulting in a ___ that
will be illuminated as the market price of the good ____ everything held constant
a) Decrease, surplus, decrease
b) Decrease , shortage, increase
c) Increase, surplus, increase
d) Increase, surplus, decrease
e) Increase, shortage decrease
4. Suppose both buyers and sellers expect the world price of oil to increase
next week everything else held constant the demand of oil will ____ and the
equilibrium price of oil will ____ TODAY
a) Decrease, increase
b) Increase , decrease
c) Increase, increase
d) Decrease, decrease
Suppose an online retailer of batteries has the following pricing scheme with free shipping
for it’s 315 silver oxide button cell battery
Quantity Purchased Price Per Battery
1-4 $3.00
5-24 $1.50
25 or more $1.00
