Exam (elaborations)
ECON2020 Exam 1 Questions and Answers
- Course
- ECON 2020
- Institution
- Auburn University
Has all of the questions and answers to ECON2020 exam 1. Correct answers are highlighted
[Show more]
Seller
Follow
Content preview
Econ 2020 Exam #1Finck 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
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller meredithelwood. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
49051 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 15 years now