EC 210 Final Exam with all Correct & 100% Verified
Answers |Actual Complete Update |Already Graded A+
The vertical axis for demand and supply curve diagrams represents ✔Correct 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 ✔Correct Answer-Jet Fuel
Which of the following is true about supply curves: ✔Correct Answer-They are upward
sloping
In market equilibrium, ✔Correct Answer-Quantity demanded equals quantity supplied
Market forces tend to push prices lower when the market is in ✔Correct 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 ✔Correct 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 ✔Correct Answer-$20
An increase in demand implies that the ✔Correct 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 ✔Correct
Answer-Speed on highways
We would expect a decrease in the demand for ✔Correct 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 ✔Correct 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) ✔Correct Answer-$1,200
An increase in production costs corresponds to a ✔Correct 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 ✔Correct 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 ✔Correct Answer-Decrease, along the demand curve
If the equilibrium quantity in a market is 100, then the 120th unit ✔Correct Answer-Costs
more than the equilibrium price to produce
The major factor driving steadily falling prices for laptops over time is a(n) ✔Correct Answer-
The major factor driving the upward spike in the price of batteries when hurricane warnings are
issued is a(n) ✔Correct Answer-Increase in demand
An increase in supply lowers equilibrium ✔Correct Answer-Price
If demand increases while supply decreases, we know for sure that in equilibrium there will be
a(n) ✔Correct Answer-Increase in price
Demand is less elastic for goods that ✔Correct Answer-Have steeper demand curves,
compared with other demand curves going through the same point
Demand is likely more elastic for ✔Correct Answer-
Demand is likely less elastic for ✔Correct Answer-neither of these
Which of the following is NOT true about elasticity of supply? If ✔Correct 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 ✔Correct Answer-OPEC
has just reached an agreement to drastically reduce the supply of oil.
Which of the following is true about elasticity? ✔Correct Answer-
Answers |Actual Complete Update |Already Graded A+
The vertical axis for demand and supply curve diagrams represents ✔Correct 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 ✔Correct Answer-Jet Fuel
Which of the following is true about supply curves: ✔Correct Answer-They are upward
sloping
In market equilibrium, ✔Correct Answer-Quantity demanded equals quantity supplied
Market forces tend to push prices lower when the market is in ✔Correct 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 ✔Correct 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 ✔Correct Answer-$20
An increase in demand implies that the ✔Correct 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 ✔Correct
Answer-Speed on highways
We would expect a decrease in the demand for ✔Correct 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 ✔Correct 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) ✔Correct Answer-$1,200
An increase in production costs corresponds to a ✔Correct 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 ✔Correct 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 ✔Correct Answer-Decrease, along the demand curve
If the equilibrium quantity in a market is 100, then the 120th unit ✔Correct Answer-Costs
more than the equilibrium price to produce
The major factor driving steadily falling prices for laptops over time is a(n) ✔Correct Answer-
The major factor driving the upward spike in the price of batteries when hurricane warnings are
issued is a(n) ✔Correct Answer-Increase in demand
An increase in supply lowers equilibrium ✔Correct Answer-Price
If demand increases while supply decreases, we know for sure that in equilibrium there will be
a(n) ✔Correct Answer-Increase in price
Demand is less elastic for goods that ✔Correct Answer-Have steeper demand curves,
compared with other demand curves going through the same point
Demand is likely more elastic for ✔Correct Answer-
Demand is likely less elastic for ✔Correct Answer-neither of these
Which of the following is NOT true about elasticity of supply? If ✔Correct 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 ✔Correct Answer-OPEC
has just reached an agreement to drastically reduce the supply of oil.
Which of the following is true about elasticity? ✔Correct Answer-
