EC 210 Final Exam
The vertical axis for demand and supply curve diagrams represents - Answer-Price
When the price of oil increases from $25 to $55 per barrel, consumers are LEAST likely to substitute
away from oil used for - Answer-Jet Fuel
Which of the following is true about supply curves: - Answer-They are upward sloping
In market equilibrium, - Answer-Quantity demanded equals quantity supplied
Market forces tend to push prices lower when the market is in - Answer-Surplus
Suppose the demand curve for oil contains the combination of price= $30/barrel and quantity
demanded= 20 million barrels per day. Read vertically, this means that - Answer-the most that
consumers are willing to pay for the 20 millionth barrel of oil per day is $30.
Suppose that along the linear market demand curve for oil, quantity demanded is zero until price falls
below $70/barrel, while at the market price of $30/barrel, 80 MBD are demanded. If you are willing to
pay $50/barrel, your consumer surplus per barrel is - Answer-$20
An increase in demand implies that the - Answer-Maximum willingness to pay has risen at every given
quantity
,As cars become safer, we would expect to see an increase in the demand for - Answer-Speed on
highways
We would expect a decrease in the demand for - Answer-the iPhone 7, if Apple announced that the
iPhone 8 release date was next month.
If Joshua earns $85,000 per year as an economist, but loves his job so much that he would do it even if
he earned only $53,000 per year, his producer surplus is - Answer-$32,000
On the producer surplus diagram in the A Deeper Look at the Supply Curve video (appearing at about
the 2:30 mark), total producer surplus is (in millions per day) - Answer-$1,200
An increase in production costs corresponds to a - Answer-Movement to the right of the supply curve
For any good which has a low-skilled labor-intensive production process, the result of raising the federal
minimum wage to $15/hour would be a - Answer-Movement to the right of the supply curve
If new uses for paper in producing various other goods are suddenly discovered, the price of printed
books today will - Answer-Decrease, along the demand curve
If the equilibrium quantity in a market is 100, then the 120th unit - Answer-Costs more than the
equilibrium price to produce
The major factor driving steadily falling prices for laptops over time is a(n) - Answer-
The major factor driving the upward spike in the price of batteries when hurricane warnings are issued is
a(n) - Answer-Increase in demand
An increase in supply lowers equilibrium - Answer-Price
, If demand increases while supply decreases, we know for sure that in equilibrium there will be a(n) -
Answer-Increase in price
Demand is less elastic for goods that - Answer-Have steeper demand curves, compared with other
demand curves going through the same point
Demand is likely more elastic for - Answer-
Demand is likely less elastic for - Answer-neither of these
Which of the following is NOT true about elasticity of supply? If - Answer-all of these are true:
a 10% increase in the price of gasoline raises the quantity of gasoline supplied by 20%, the elasticity of
supply for gasoline is 2.
the elasticity of supply for tobacco is 5 and the price of tobacco increases by 5%, the quantity of tobacco
supplied will increase by 25%.
the elasticity of supply for housing is 2.5 and the quantity of housing supplied has increased by 10%,
housing prices have increased by 4%.
As a consumer, you would benefit from demand being MORE elastic if - Answer-OPEC has just reached
an agreement to drastically reduce the supply of oil.
Which of the following is true about elasticity? - Answer-
Supply is likely to become less elastic for - Answer-Both of these:
The vertical axis for demand and supply curve diagrams represents - Answer-Price
When the price of oil increases from $25 to $55 per barrel, consumers are LEAST likely to substitute
away from oil used for - Answer-Jet Fuel
Which of the following is true about supply curves: - Answer-They are upward sloping
In market equilibrium, - Answer-Quantity demanded equals quantity supplied
Market forces tend to push prices lower when the market is in - Answer-Surplus
Suppose the demand curve for oil contains the combination of price= $30/barrel and quantity
demanded= 20 million barrels per day. Read vertically, this means that - Answer-the most that
consumers are willing to pay for the 20 millionth barrel of oil per day is $30.
Suppose that along the linear market demand curve for oil, quantity demanded is zero until price falls
below $70/barrel, while at the market price of $30/barrel, 80 MBD are demanded. If you are willing to
pay $50/barrel, your consumer surplus per barrel is - Answer-$20
An increase in demand implies that the - Answer-Maximum willingness to pay has risen at every given
quantity
,As cars become safer, we would expect to see an increase in the demand for - Answer-Speed on
highways
We would expect a decrease in the demand for - Answer-the iPhone 7, if Apple announced that the
iPhone 8 release date was next month.
If Joshua earns $85,000 per year as an economist, but loves his job so much that he would do it even if
he earned only $53,000 per year, his producer surplus is - Answer-$32,000
On the producer surplus diagram in the A Deeper Look at the Supply Curve video (appearing at about
the 2:30 mark), total producer surplus is (in millions per day) - Answer-$1,200
An increase in production costs corresponds to a - Answer-Movement to the right of the supply curve
For any good which has a low-skilled labor-intensive production process, the result of raising the federal
minimum wage to $15/hour would be a - Answer-Movement to the right of the supply curve
If new uses for paper in producing various other goods are suddenly discovered, the price of printed
books today will - Answer-Decrease, along the demand curve
If the equilibrium quantity in a market is 100, then the 120th unit - Answer-Costs more than the
equilibrium price to produce
The major factor driving steadily falling prices for laptops over time is a(n) - Answer-
The major factor driving the upward spike in the price of batteries when hurricane warnings are issued is
a(n) - Answer-Increase in demand
An increase in supply lowers equilibrium - Answer-Price
, If demand increases while supply decreases, we know for sure that in equilibrium there will be a(n) -
Answer-Increase in price
Demand is less elastic for goods that - Answer-Have steeper demand curves, compared with other
demand curves going through the same point
Demand is likely more elastic for - Answer-
Demand is likely less elastic for - Answer-neither of these
Which of the following is NOT true about elasticity of supply? If - Answer-all of these are true:
a 10% increase in the price of gasoline raises the quantity of gasoline supplied by 20%, the elasticity of
supply for gasoline is 2.
the elasticity of supply for tobacco is 5 and the price of tobacco increases by 5%, the quantity of tobacco
supplied will increase by 25%.
the elasticity of supply for housing is 2.5 and the quantity of housing supplied has increased by 10%,
housing prices have increased by 4%.
As a consumer, you would benefit from demand being MORE elastic if - Answer-OPEC has just reached
an agreement to drastically reduce the supply of oil.
Which of the following is true about elasticity? - Answer-
Supply is likely to become less elastic for - Answer-Both of these:
