Econ 2020 Exam #1
Finck Fall 2022
1. A perfectly inelastic demand curve: (Mark all that apply.)
a. is represented on a graph by a vertical line
b. has an elasticity coefficient equal to 0
c. is represented on a graph by a horizontal line
d. has an elasticity coefficient equal to infinity
e. has a price elasticity of demand coefficient equal to 1
2. In a market where demand is given by the equation Qd = 210 - 2P and supply is
given by the equation Qs = -18 + 4P, find the equilibrium quantity.
a. 134
3. Which of the following will cause the supply curve to shift to the left? (Mark all
that apply.)
a. a fall in taxation
b. a fall in the number of sellers
c. a rise in the price of a substitute
d. an improvement in technology
e. a rise in the price of an input
4. How do expectations of higher future prices affect the market for sailboats
today?
a. supply decreases and demand increases, causing a fall in equilibrium
price and a rise in quantity
b. supply decreases and demand increases, causing a rise in equilibrium
price and an indeterminate change in quantity
c. supply and demand decrease, causing an indeterminate change in
equilibrium price and a fall in quantity
d. supply increases and demand decreases, causing a fall in equilibrium
price and an indeterminate change in quantity
5. According to the Law of Supply:
a. the price of a good and the quantity demanded are inversely related
b. the price of a good and the quantity supplied are inversely related
c. the price of a good and the quantity demanded are positively related
d. the price of a good and the quantity supplied are positively related
6. Using the midpoint formula, find the elasticity coefficient for a producer when a
price increase from $12 to $13 causes a fall in quantity demanded from 340 units
to 310 units.
a. 1.15
, 7. If the figure depicts the market for ribs, then an increase in the price of pork
chops (a substitute) would be depicted by
a. a movement from point 1 to point 2
b. a movement from point 2 to point 1
c. a shift from D1 to D2
d. a shift from D2 to D1
8. If the figure depicts the market for ribs, then an increase in the price of ribs would
be depicted by
a. a shift from D1 to D2
b. a movement from point 1 to point 2
c. a movement from point 2 to point 1
d. a shift from D2 to D1
9. At which point is D1 relatively more price elastic?
a. 2
b. elasticity is constant along a linear demand curve
Finck Fall 2022
1. A perfectly inelastic demand curve: (Mark all that apply.)
a. is represented on a graph by a vertical line
b. has an elasticity coefficient equal to 0
c. is represented on a graph by a horizontal line
d. has an elasticity coefficient equal to infinity
e. has a price elasticity of demand coefficient equal to 1
2. In a market where demand is given by the equation Qd = 210 - 2P and supply is
given by the equation Qs = -18 + 4P, find the equilibrium quantity.
a. 134
3. Which of the following will cause the supply curve to shift to the left? (Mark all
that apply.)
a. a fall in taxation
b. a fall in the number of sellers
c. a rise in the price of a substitute
d. an improvement in technology
e. a rise in the price of an input
4. How do expectations of higher future prices affect the market for sailboats
today?
a. supply decreases and demand increases, causing a fall in equilibrium
price and a rise in quantity
b. supply decreases and demand increases, causing a rise in equilibrium
price and an indeterminate change in quantity
c. supply and demand decrease, causing an indeterminate change in
equilibrium price and a fall in quantity
d. supply increases and demand decreases, causing a fall in equilibrium
price and an indeterminate change in quantity
5. According to the Law of Supply:
a. the price of a good and the quantity demanded are inversely related
b. the price of a good and the quantity supplied are inversely related
c. the price of a good and the quantity demanded are positively related
d. the price of a good and the quantity supplied are positively related
6. Using the midpoint formula, find the elasticity coefficient for a producer when a
price increase from $12 to $13 causes a fall in quantity demanded from 340 units
to 310 units.
a. 1.15
, 7. If the figure depicts the market for ribs, then an increase in the price of pork
chops (a substitute) would be depicted by
a. a movement from point 1 to point 2
b. a movement from point 2 to point 1
c. a shift from D1 to D2
d. a shift from D2 to D1
8. If the figure depicts the market for ribs, then an increase in the price of ribs would
be depicted by
a. a shift from D1 to D2
b. a movement from point 1 to point 2
c. a movement from point 2 to point 1
d. a shift from D2 to D1
9. At which point is D1 relatively more price elastic?
a. 2
b. elasticity is constant along a linear demand curve
