Submitted by: Submitted by cougar40
Views: 174
Words: 1017
Pages: 5
Category: Other Topics
Date Submitted: 11/14/2014 08:45 PM
* Question 1
4 out of 4 points
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| Which of the following would shift the demand curve for gasoline in the current period to the right? | | | |
| Selected Answer: | b. an increase in consumer income, assuming gasoline is a normal good |
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* Question 2
4 out of 4 points
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| Suppose that a decrease in the price of good X results in fewer units of good Y being sold. This implies that X and Y are
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| Selected Answer: | substitute goods. |
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* Question 3
4 out of 4 points
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| Which of the following would lead to a DECREASE in the demand for tennis balls? | | | |
| Selected Answer: | A decrease in average household income when tennis balls are a normal good |
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* Question 4
4 out of 4 points
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| When Sonoma Vineyards reduces the price of its Cabernet Sauvignon from $15 a bottle to $12 a bottle, the result is an increase in | | | |
| Selected Answer: | the quantity of this wine demanded. |
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* Question 5
4 out of 4 points
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| Use the following general linear demand relation to answer questions 5 through 8:
Qd = 680 – 9P + 0.006M – 4PR
where M is income and PR is the price of a related good, R.
From this relation it is apparent that the good is: | | | |
| Selected Answer: | both c and d |
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* Question 6
4 out of 4 points
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| If M = $15,000 and PR = $20, the demand function is | | | |
| Selected Answer: | Qd
= 690 – 9P. |
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* Question 7
4 out of 4 points
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| If M = $15,000 and PR = $20 and the supply function is Qs
= 30 + 3P, equilibrium price and quantity are, respectively,
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| Selected Answer: | P = $55 and Q = 195. |
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* Question 8
4 out of 4 points
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| If M = $15,000 and PR = $20 and the supply function is Qs
= 30 + 3P, then, when the price of the good is $60,
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