Econ 2110 Exam 2 Clemson Questions And Answers

Econ 2110 Exam 2 Clemson Questions
And Answers
1.qWhichqofqtheqfollowingqwillqnotqincreaseqtheqdemandqforqburritos?q
a.qAqbigqburritosqsale.q
b.qTheqdiscoveryqthatqeatingqburritosqcuresqcancer.q
c.qAqriseqinqtheqpriceqofqburgers,qaqsubstitute.q
d.qAqfallqinqtheqpriceqofqguacamole,qaqcomplement.q
e.qAllqofqtheqaboveqwillqincreaseqtheqdemandqforqburritos.q-qCORRECTqqANSWER-
a.qAqbigqburritosqsale.

10.qDougqlikesqtomatoesqnowqmoreqthanqheqdidqlastqyear.qThereforeq
a.qDougqmustqhaveqreceivedqanqincreaseqinqincome.q
b.qtomatoesqmustqbeqaqnecessity.q
c.qtheqsupplyqofqtomatoesqhasqincreased.q
d.qDougqisqwillingqtoqpayqmoreqforqtomatoesqthanqlastqyear.q-qCORRECTqqANSWER-
d.qDougqisqwillingqtoqpayqmoreqforqtomatoesqthanqlastqyear.

11.qAtqwhatqpriceqisqquantityqdemandedqgreatest?qAtqwhatqpriceqisqquantityqsuppliedqgreate
st?
qa.q1,q7

b.q3,q5q
c.q5,q3q
d.q7,q1q-qCORRECTqqANSWER-a.q1,q7

12.qAtqwhatqwhichqofqtheqfollowingqpricesqwillqtheqmostqkumquatsqactuallyqbeqsoldq(i.e.,qcha
ngeqhandsqfromqsellerqtoqbuyer)?
qa.q1.q

b.q3.q
c.q5.q
d.q7.q-qCORRECTqqANSWER-b.q3.

13.qTheqtwoqgraphsqaboveqshowq(inqorderqfromqtopqtoqbottom)
a.qAnqincreaseqinqdemand,qaqdecreaseqinqsupply
b.qAnqincreaseqinqsupply,qaqdecreaseqinqdemandq
c.qAqdecreaseqinqdemand,qaqdecreaseqinqsupplyq

,d.qAnqincreaseqinqsupply,qanqincreaseqdemandq
e.qNoneqofqtheqaboveq-qCORRECTqqANSWER-
a.qAnqincreaseqinqdemand,qaqdecreaseqinqsupply

14.qAssumeqtheqtwoqgraphsqreferqtoqaqsingleqmarket,qtheqmarketqforqwidgets.qAsqaqresultqofq
theqchanges,qweqwouldqexpectq
a.qHigherqwidgetqpricesq
b.qLowerqwidgetqpricesq
c.qNoqchangeqinqtheqpriceqofqwidgetsq
d.qNotqenoughqinformationqtoqsayq-qCORRECTqqANSWER-a.qHigherqwidgetqprices

15.qIfqdemandqisqelastic,qweqwouldqexpectq
a.qaqbigqchangeqinqquantityqwhenqpriceqchanges.
b.qaqsmallqchangeqinqquantityqwhenqpriceqchanges.q
c.qtheqdemandqcurveqtoqshiftqwhenqpriceqchanges.q
d.qsupplyqtoqbeqelasticqasqwell.q-qCORRECTqqANSWER-
a.qaqbigqchangeqinqquantityqwhenqpriceqchanges.

16.qWhichqofqtheqfollowingqwouldqyouqexpectqtoqhaveqtheqleastqelasticqdemand?q
a.qbreakfastqcereal.qb.qKellogg'sqbreakfastqcerealq
c.qKellogg'sqbreakfastqcerealqsoldqatqIngles.q
d.qfood.q
e.qThereqisqnotqenoughqinformationqtoqdetermine.q-qCORRECTqqANSWER-d.qfood.

17.qWhichqofqtheqfollowingqwouldqmakeqtheqdemandqforqeducationqatqClemsonqmoreqelastic
?q
a.qAnqimprovementqinqtheqqualityqofqClemsonqeducation.q
b.qTheqfoundingqofqfourqmorequniversitiesqinqSouthqCarolina.
c.qAqfallqinqtheqpriceqofqtextbooks.q
d.qAqriseqinqlocalqlandqprices.q-qCORRECTqqANSWER-
b.qTheqfoundingqofqfourqmorequniversitiesqinqSouthqCarolina.

18.qIfqpriceqrisesqfromq10qtoq12qandqquantityqdemandedqfallsqbyq12%,qweqknowqthatqdeman
dqisq
a.qelastic.q
b.qinelastic.q
c.qunitqelastic.q
d.qdownwardqsloping.q
e.qThereqisqnotqenoughqinformationqtoqsay.q-qCORRECTqqANSWER-b.qinelastic.

19.qWhichqofqtheqfollowingqwouldqyouqexpectqtoqhaveqtheqleastqelasticqdemand?q
a.qwheatqbreadqmadeqbyqPepperidgeqFarm.q
b.qheadacheqmedicine.q
c.qwheatqbreadqmadeqbyqPepperidgeqFarmqandqsoldqatqBi-Loq
d.qThereqisqnotqenoughqinformationqtoqdetermine.q-qCORRECTqqANSWER-
b.qheadacheqmedicine

, 2.qWhichqofqtheqfollowingqwillqnotqdecreaseqtheqsupplyqofqburritos.qa.qtheqdiscoveryqthatqeati
ngqburritosqcausesqcancer.q
b.qaqriseqinqtheqpriceqofqtheqtortillasqusedqtoqmakeqburritos.q
c.qaqriseqinqtheqpriceqofqwagesqpaidqtoqburrito-
makingqemployees.qd.qAllqofqtheqaboveqwillqdecreaseqtheqsupplyqofqburritos.q-
qCORRECTqqANSWER-a.qtheqdiscoveryqthatqeatingqburritosqcausesqcancer.




20.qTheqdemandqforqthisqproductq
a.qisqelastic.q
b.qisqinelastic.q
c.qisqunitqelastic.q
d.qmayqbeqelasticqorqinelastic,qdependingqonqtheqprice.q-qCORRECTqqANSWER-
d.qmayqbeqelasticqorqinelastic,qdependingqonqtheqprice.

21.qTheqelasticityqofqdemandqforqaqpriceqcutqfromq10qtoq9qisq
a.q4
b.q2.5q
c.q2q
d.q1.5q
e.q0.5q-qCORRECTqqANSWER-b.q2.5

22.qTheqfirmqisqcurrentlyqchargingqaqpriceqofq8.qIfqitqwantsqtoqincreaseqitsqsalesqrevenue,qitqs
houldq
a.qraiseqpriceqtoq9.q
b.qlowerqpriceqtoq7.
c.qleaveqtheqpriceqatq8,qbecauseqitqwillqhaveqexcessqdemandqatqaqlowerqpriceqandqexcessqsu
pplyqatqaqhigherqprice.q
d.qeitherqraisingqorqloweringqpriceqwillqincreaseqtotalqrevenue.q
e.qneitherqraisingqorqloweringqpriceqwillqincreaseqtotalqrevenue.q-qCORRECTqqANSWER-
b.qlowerqpriceqtoq7.

23.qWeqthereforeqknowqthatqatqtheqpriceqofq8,qdemandqforqtheqproductq
a.qwillqincreaseqifqpriceqfalls.q
b.qdecreaseqifqpriceqrises.q
c.qisqelastic.q
d.qisqinelastic.q
e.qAllqofqtheqabove.q-qCORRECTqqANSWER-c.qisqelastic.

24.qAqnormalqgoodqisqoneqforqwhichq
a.qdemandqincreasesqwhenqincomeqincreases.
b.qdemandqincreasesqwhenqpriceqdecreases.q
c.qdemandqincreasesqwhenqtastesqchange.q
d.qdemandqisqelastic.q
e.qdemandqisqinelastic.q-qCORRECTqqANSWER-
a.qdemandqincreasesqwhenqincomeqincreases.