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Eco 2302 exam with complete solutions 2024_2025
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Eco 2302 exam with complete solutions 2024_2025
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Eco 2302 exam with complete solutions2024/2025
Which of the following would lead to higher price Elasticity of demand? -
ANSWER-More substitutes for the goods.
If the price elasticity of demand for ketchup is 0.50, then the price elasticity of
demand for ______ is likely to be ______ - ANSWER-Brand A ketchup ,higher.
At a price of $8.00. quantity supplied is 100 units. At a price of $9.00, quantity
supplied is 126 units. Price elasticity of supply for the good is
approximately_______ - ANSWER-1.96
If the supply curve of a good is perfectly elastic, and a per unit tax is placed on
the production of the good, it follows that ________ - ANSWER-Consumers will
end up paying the entire tax .
If the demand for a good is inelastic, and price rises, total revenue ______; if the
demand of good is elastic, and price falls, total revenue will ______; if the demand
of Good is unit elastic, and price rises, total revenue will _____. - ANSWER-rise,
rise, remain unchanged
If the price of good X falls by 5% and as a result the quality demanded of good Y
rises by 4% the cross elasticity of demand for goods X and Y is _____ and goods
X and Y are_______ - ANSWER--0.80, complements
The price of good Y rises from $8.00 to $8.60 as the quantity supplied rises from
2,000 to 2,400 units the price elasticity of supply for good Y is _____ and good Y
is price _____ in supply. - ANSWER-2.52, elastic
, The seller of a good will pay the full tax that is placed on the sale of that good if
demand is _____ or supply is _____ - ANSWER-Perfectly elastic, perfectly
inelastic
Marry spends the following percentage of her budget on goods A,B,C, and D: 29%
on good A, 15% good B, 10%good on C, and 6%good D. Ceteris paribus, for
which good is price elasticity of demand the highest, ceteris paribus? - ANSWER-
Good A
the endowment effect - ANSWER-states that we value an item more highly if we
own it than if we do not own it.
Which expresses the idea behind compartmentalizing? - ANSWER-innie finds it
easier to spend the $100 he received as a birthday gift than the $100 he earned at
his job.
If marginal utility for a good becomes negative, then - ANSWER-total utility of the
good may begin to decline at some point.
Suppose Joe is purchasing lemonade and popcorn in quantities such that he is
achieving consumer equilibrium. Then the price of lemonade increases. Ceteris
paribus, Joe will likely ________ his consumption of lemonade because the
marginal utility per dollar spent on lemonade has ________. - ANSWER-decrease,
decreased
Researchers in the field of neuroeconomics have found that when an individual is
faced with two future-oriented choices the ________ system is involved which is
the portion of the brain that deals with ________. - ANSWER-analytic, calculating,
conscious thinking
The reason that diamonds are more expensive than water is because a diamond
has ________ than an additional unit of water. - ANSWER-a higher marginal utility
David receives 50 utils from consuming two oranges. The utility he derives from
consuming the second orange equals 20 utils. Which of the following
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