Economy Sample Questions

EC101 Sample Midterm 1 Questions Spring 2007

Solutions are at the end of the file

The next four questions refer to the market for tickets for an event at the BU Agganis Arena, with the demand and supply schedules shown below:

|Price |Quantity Demanded |Quantity Supplied |

|$0 |40,000 |7,000 |

|$2 |35,000 |7,000 |

|$6 |18,000 |7,000 |

|$10 |10,000 |7,000 |

|$14 |7,000 |7,000 |

|$18 |4,000 |7,000 |

|$20 |1,000 |7,000 |

1. The supply curve for tickets at the BU Agganis Arena is

|a. |Perfectly inelastic |

|b. |Unitary elastic |

|c. |Perfectly horizontal |

|d. |Perfectly elastic |

2. The equilibrium price and quantity in the market for tickets at the Arena are

|a. |$20 and...