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Suppose that the economy is growing

Gallina is struggling college student. She likes to eat lobster

Consider the market for grapes. An increase in the wage paid to grape pickers will cause the:

a) demand curve for grapes to shift to the right, resulting in a higher equilibrium price for grapes and a reduction in the quantity consumed.

b) demand curve for grapes to shift to the left, resulting in a lower equilibrium price for grapes and an increase in the quantity consumed.

c) supply curve for grapes to shift to the left, resulting in a lower equilibrium price for grapes and a decrease in the quantity consumed.

d) supply curve for grapes to shift to the left, resulting in a higher equilibrium price for grapes and a decrease in the quantity consumed

Consider the market for grapes. An increase in the wage paid to grape pickers will cause the:

a. demand curve for grapes to shift to the right, resulting in a higher equilibrium price for grapes and a reduction in the quantity consumed.

b. demand curve for grapes to shift to the left, resulting in a lower equilibrium price for grapes and an increase in the quantity consumed.

c. supply curve for grapes to shift to the left, resulting in a lower equilibrium price for grapes and a decrease in the quantity consumed.

d. supply curve for grapes to shift to the left, resulting in a higher equilibrium price for grapes and a decrease in the quantity consumed.

Answer these MC:

Use the following information to answer the next two questions. Consider a competitive market for grapes with supply and demand given by the following:

QD= 1500 –5p QS=10p+20R

where R is the annual rainfall in inches.

5. An increase in rainfall (R) will - a) shift demand left b) shift demand right C) shift supply left D) shift supply right

6. An increase in rainfall will - a) decrease the equilibrium price and decrease the equilibrium quantity. b) decrease the equilibrium price and increase the equilibrium quantity. c) increase the equilibrium price and decrease the equilibrium quantity. d) increase the equilibrium price and increase the equilibrium quantity.

17) Suppose the price of Apples rises to pA=15 while at the same time Marcus’ income rises such that the original quantity of Apples and Eggs he consumed is still exactly affordable. Then we can conclude that Marcus is

A) no better or worse off from the income and price change. B) better off and will consume more apples and less eggs than before. C) better off and will consume less apples and more eggs than before. D) worse off and will reduce both consumption of eggs and apples.

1) A rise in the wages of workers in the beef industry will:

2) If cigarettes are an inferior good, then a rise in consumer income will:

3) A price floor will:

4) If new smoking ads increase the "taste" for cigarettes among teens then:

5) A technological improvement in apple production will:

6) A large tax on a pack tax on cigarettes will:

7)Which of the following will decrease gasoline consumption?

8) If the price of bananas decrease, then:

9) A significant improvement in auto technology will:

1. Suppose spaghetti is an inferior good, then an increase in income will cause...

Question 1 options:

If the demand for coffee is relatively inelastic, then an increase in the supply of coffee will:

A. Decrease the total revenue of coffee growers.

B. Increase the total revenue of coffee growers.

C. Not change the total revenue of coffee growers.

D. Increase the price elasticity of coffee demand

Given that chicken and beef are substitute goods, if the price of chicken decreases substantially, there would be:

a. no change in the demand for beef.
b. an increase in the demand for beef.
c. a decrease in the quantity demanded of beef.
d. a decrease in the demand for beef.

8) If the price of chicken increases, demand for beef

a. Decreases because chicken and beef are complements

b. Increases because chicken and beef are substitutes

c. Decreases because chicken and beef are substitutes

d. Increases because chicken and beef are complements

Given that chicken and beef are substitute goods, if the price of chicken decreases substantially, there would be:

a. no change in the demand for beef.
b. an increase in the demand for beef.
c. a decrease in the quantity demanded of beef.
d. a decrease in the demand for beef.

Which of the following would NOT shift the demand curve for beef?

a) a widely publicized study that indicated beef increases one's cholesterol.
b) a reduction in the price of beef.
c) an effective advertising campaign by pork producers.
d) a change in the incomes of beef consumers.

19. Other things equal, which of the following might shift the demand curve for gasoline to the right?
A. the discovery of vast new coal reserves in West Virginia

B. the development of a low-cost electric automobile
C. an increase in the price of train and air transportation
D. a large decline in the price of automobiles

20. When the price of a product rises, consumers shift their purchases to other products whose prices are now relatively lower. This statement describes:
A. an inferior good.
B. the rationing function of prices.
C. the substitution effect.
D. the income effect.

21. Which of the following would not shift the demand curve for beef?
A. a widely publicized study that indicates beef increases one's cholesterol
B. a reduction in the price of cattle feed
C. an effective advertising campaign by pork producers
D. a change in the incomes of beef consumers

22. Suppose an excise tax is imposed on product X. We would expect this tax to:
A. increase the demand for complementary good Y and decrease the demand for substitute product Z.
B. decrease the demand for complementary good Y and increase the demand for substitute product Z.
C. increase the demands for both complementary good Y and substitute product Z.
D. decrease the demands for both complementary good Y and substitute product Z.

23. Assume product A is an input in the production of product B. In turn product B is a complement to product C. We can expect a decrease in the price of A to:
A. increase the supply of B and increase the demand for C.
B. decrease the supply of B and increase the demand for C.
C. decrease the supply of B and decrease the demand for C.
D. increase the supply of B and decrease the demand for C.

24. The demand curve for a product might shift as the result of a change in:
A. consumer tastes.
B. consumer incomes.
C. the prices of related goods.
D. all of these.

Question 1:

A recent study found that an increase in the Federal tax on beer (and thus an increase in the price of beer) would reduce the demand for marijuana. We can conclude that:

Question 2:

Assume the demand curve for product X shifts to the right. This might be caused by:

Which of the following changes will not cause the demand for root beer to increase?

a. a fall in the price of root beer

b. an increase in consumers’ incomes (with root beer being a normal good)

c. a decrease in consumers’ incomes (with root beer being an inferior good)

d. an increase in the price of ginger ale (with ginger ale being a substitute good for root beer)

e. consumer preferences change so that many more people come to really love drinking root beer

Goods A and B are complementary to each other if, as the price of A changes the demand for B

a. changes in the same direction

b. changes in the opposite direction

c. is unaffected

According to economists, if a lasting shortage of coffee exists, it is caused by

a. the price of coffee being held below the equilibrium price of coffee

b. the price of coffee being held above the equilibrium price of coffee

c. the price of coffee being held at the equilibrium price of coffee

d. consumers increasing their demand for coffee

e. consumers decreasing their demand for coffee

1)

In the event of excess supply in the coffee market

a. the price of coffee will increase.

b. the price of coffee will decrease.

c. the supply of coffee will decrease (supply will shift to the left) to meet the demand.

d. the demand for coffee will increase (demand will shift to the right) to meet the supply.

2)

If the number of highway deaths among young people is roughly proportional to their beer consumption and young peoples' elasticity of demand for beer is 1.5, then a tax increase that increases the price of beer by 20% would roughly reduced highway deaths of young people by

a. 1.5%.

b. 13.33%.

c. 20%.

d. 30%.

3)

The price elasticity of demand for color printers is 1.6 and you would like to see the quantity demanded for color printers to increase by 32%. Then the percentage change in price should be

a. 10%.

b. 15%.

c. 20%.

d. 25%.

4)

Which of the following statements is incorrect?

a. A firm's total economic cost is at least as large as the firm's total accounting cost.

b. A firm's total economic cost includes both explicit cost and implicit cost of the firm.

c. A firm's implicit cost is the opportunity cost of non-purchased inputs.

d. A firm's total accounting cost is at least as large as the firm's implicit cost.

5) In the long run

a. all factors of production are fixed.

b. all factors of production are variable.

c. some factors of production are variable, while at least one factor of production is fixed.

d. None of the above is correct.

6)

When the firm increases output and the costs rise proportionately, then the long-run average cost curve is ________ and the firm is experiencing ________.

a. horizontal; constant returns to scale

b. downward sloping; constant returns to scale

c. upward sloping; diseconomies of scale

d. downward sloping; economies of scale

19) Suppose that the elasticity of demand for newspapers is 2.0 and quantity demanded decreases by 40%. What must the percentage increase in price have been? 19) ______
A) 2% B) 20% C) 80% D) 200%

20) If the number of highway deaths among young people is roughly proportional to their beer consumption and young peoples' elasticity of demand for beer is 1.5, then to decrease highway deaths of young people by 15 percent, taxes would need to be increased enough to increase the price of beer by: 20) ______
A) 1%. B) 1.5%. C) 10%. D) 15%.

21) Figure 6.9 depicts a hypothetical fish market with a horizontal supply curve. Suppose the government imposes a tax of $2 per pound of fish, and the tax is paid in legal terms by producers. If the supply curve were positively sloped: 21) ______
A) consumers would bear the full cost of the tax. B) both producers and consumers share the tax. C) producers would bear the full cost of the tax. D) There is not sufficient information.

22) If the government imposes a maximum price in a market that is below the equilibrium price: 22) ______ A) total surplus in the market decreases. B) total surplus in the market does not change. C) total surplus in the market increases. D) total surplus may increase or decrease, depending on whether costs are increasing or decreasing in production.
23) If demand is elastic, and the government decides to raise the tax on new cars. Then the price for cars will increase by a ________ amount and car buyers will bear a ________ share of the tax. 23) ______
A) large; small B) small; large C) large; large D) small; small

24) Which of the following statements about consumer choice theory is TRUE? 24) ______ A) It helps us understand changes in consumption patterns. B) It provides insights into how consumers make decisions. C) Given the limitations dictated by people's incomes and prices, it helps the consumer choose a commodity bundle of the highest level of utility. D) All of the above are true about consumer choice theory.

25) Refer to Figure 7.7. Which of the following is true? 25) ______ A) A is preferred to C. B) C is preferred to A. C) B is preferred to D. D) D is preferred to B.

26) When at least one factor of production is fixed, firms require more and more workers to produce each additional unit
of output. This describes: 26) ______
A) learning by doing. B) diminishing marginal returns. C) increasing marginal returns. D) short-run adjustments.
Recall the Application about the reduction in costs of generating solar power to answer the following question(s).

27) Recall the Application. A tax levied on coal-fired plants that is based on the amount of carbon released in the atmosphere is considered by the firm as a: 27) ______
A) sunk cost. B) variable cost. C) source of revenue D) fixed cost.

28) Figure 8.2 presents a firm's marginal, average total, average fixed, and average variable cost curves. The firm minimizes average variable costs by producing ________ units. 28) ______
A) 50 B) 100 C) 150 D) 200

29) Figure 9.2 shows the cost structure of a firm in a perfectly competitive market. If the market price is $10 and the firm chooses the profit maximizing output level, its profit is: 29) ______
A) $1,000. B) $800. C) $720. D) $200.

30) Price discrimination is related to elasticity because: 30) ______ A) the firm can increase revenues by charging all customers higher prices. B) the firm can increase revenues by charging customers with elastic demands higher prices and charging customers with inelastic demands lower prices. C) the firm can increase revenues by charging customers with elastic demands lower prices and charging customers with inelastic demands higher prices. D) None of the above; elasticity and price discrimination are unrelated.

31) Figure 10.1 shows a monopolist's demand curve. If the monopolist increases output from four to five units, what is its marginal revenue? 31) ______
A) $16 B) $15 C) $3 D) -$1

32) Studies of real world markets suggest that prices and the number of firms of comparable size in a market are: 32) ______
A) negatively or inversely related. B) positively related. C) not related. D) sometimes negatively or inversely related, but usually positively related.

33) Under the conditions of monopolistic competition, if a firm is earning economic profits in the short run: 33) ______
A) long-run economic profits are positive. B) firm profits are higher in the long run than in the short run. C) prices are higher in the long run than in the short run. D) average costs of production are higher in the long run than in the short run.

34) The key feature of ________ is that firms act strategically. 34) ______ A) perfectly competition B) a natural monopoly C) a monopoly D) an oligopoly

35) Consider the game tree in Figure 12.8. If Store A and Store B make advertising decision independently, 35) ______
A) both stores choose to advertise. B) both stores choose not to advertise. C) only Store A chooses to advertise. D) only Store B chooses to advertise.

36) Suppose that there are five firms in a market, each controlling 20% of the market. The HHI would equal 36) ______
A) 10. B) 100. C) 1,000. D) 2,000.
Recall the Application about the government blocking the merger between baby food makers Heinz and Beech-Nut to
answer the following question(s).

37) Recall the Application. Heinz, the second largest baby food producer tried to buy the Beech-Nut brand. Even though the combined firm would be less than half the size of the market leader Gerber, the government blocked the merger because: 37) ______
A) the smaller the number of firms the more difficult it is for the government to regulate them. B) Gerber did not want a competitor as big as the combined firm would have been. C) most stores only stock two brands of baby food and Heinz and Beech vigorously compete. D) bigger firms have too much political clout.

38) Under a policy of average-cost pricing, a monopolist must charge the price at which its ________ cost curve intersects its ________ curve. 38) ______
A) marginal; demand B) average variable; demand C) average; demand D) marginal; marginal revenue
Recall the Application about how physical attractiveness affects wages to answer the following question(s).

39) Recall the Application. Relative to people of average appearance workers receive ________ wages if they are ________. 39) ______
A) the same; either attractive or unattractive B) higher; unattractive C) lower; more attractive than average D) higher; more attractive than average

40) If the equilibrium wage is above the actual wage: 40) ______ A) the wage rate will fall. B) the demand for labor will increase. C) the wage rate will rise. D) the demand for labor will decrease.

41) You are running a small yard maintenance business for the summer. What do you expect to happen to the number of yards you can maintain in a day as you add workers if you don't purchase more capital equipment (like mowers and leaf blowers)? 41) _____________

42) Gloria works for a museum in a large city with many other museums. Her boss proposes that the museum should raise the price of admission to increase revenues. Gloria was a good student in her economics principles course. How should she advise her boss? 42) _____________

43) "If the amount of product differentiation in a monopolistically competitive industry is very small, the outcome in that market will not be very different than if it were a perfectly competitive industry." Explain. 44) _____________

44) Explain what is meant by predatory pricing, and the inherent difficulties involved with predatory pricing from a firm's point of view. 44) _____________

A) The indifference curves for $5 bills and $10 bills will be:

a. L-shaped b. A straight line with a negative slope c. A straight line with a positive slope d. cocave

B) Sue is choosing between wine and cheese. The price of wine is $10 and the price of cheese is $5. If Sue's current marginal rate of substitution is 1, and if wine is on the horizontal axis and cheese is on the vertical axis then Sue is purchasing

a. Too much cheese b. Just the right amount of both goods c. Too much wine d. More than what her income would allow

C) For the demand function P=20-2Q

a. Demand is inelastic at price 16 b. unitary elasticity occurs at price 2 c. total revenue is maximized at price 12 d. demand is elastic at price 12

I think A) is b. because they are substitutes but I'm unsure because I know you'll need twice as many $5 bills to make up for the $10 billsbut I don't know if that makes a difference in this situation.

I think B) is c. And I think C) is d. just because it looks like the right answer but I'd like to see the work on it to show how to get to the right answer regardless.

You already have a ticket to see the Rolling Stones. The ticket cost $30, but scalpers without effort are legally selling the same ticket for $100. You must give up your income as a waiter on a Saturday night in order to see the concert. You would have made $70 at your job, which you enjoy enough to do for nothing. What is the opportunity cost of the Rolling Stones concert? PUT YOUR ANSWER ON THE ANSWER SHEET

Use the following to answer questions 2, 3, and 4: Let supply be given by P = 4Q and demand by P = 15 - 2Q. Suppose we now place a tax of $3 per unit of output on the seller.

2. The new supply curve is __________. PUT YOUR ANSWER ON THE ANSWER SHEET 3. The new equilibrium quantity is _____.
4. The new equilibrium price is ______.

5. The indifference curves for $5 bills and $10 bills will be:
A. L-shaped C. A straight line with positive slope B. A straight line with negative slope D. Concave

6. Sue is choosing between wine and cheese. The price of wine is 10 and the price of cheese is 5. If Sue’s current marginal rate of substitution is 1, and if wine is on the horizontal axis and cheese is on the vertical axis then Sue is purchasing:
A. Too much cheese C. Too much wine

B. Just the right amount of both goods D. More than what her income would allow

7. Your income rises from $50,000 a year to $55,000 and your monthly purchases of bottles of wine increase from 3 to 4. What number below most closely approximates your income elasticity over this range?

A. 1 B. .4 C. 3

8. For the demand function P = 20 - 2Q A. Demand is inelastic at price 16
B. Unitary elasticity occurs at price 2

D. 4

C. Total revenue is maximized at price 12 D. Demand is elastic at price 12

E

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9. The above figure shows Bobby's indifference map for soda and juice. B1 indicates his original budget line. B2 indicates his budget line resulting from a decrease in the price of soda. What was change in quantity as a result of the substitution effect? ________.

10. The above figure shows Bobby's indifference map for soda and juice. B1 indicates his original budget line. B2 indicates his budget line resulting from a decrease in the price of soda. What was change in quantity as a result of the income effect? _________.

Questions 11 to 20: (5, 7.5, and 10 point questions) Do all the question. BE SURE TO SHOW YOUR WORK / EXPLAIN YOUR ANSWERS. 70 Points Total (Use Answer Sheet)

11. (5 points) Do a and b.
a. If the demand curve of a market is P = 14 - Q and the supply curve is P = 2 + 2Q, what is the surplus created if a price floor of 11 is imposed in the market?

b. If the demand and supply are identical to the previous question but a price ceiling of 8 is imposed, what will the shortage be?

12. (5 points) Answer a and b
a. The market demand for a gallon of mineral water is P = 20 - .1Q. The producer wants to produce where the elasticity of demand is unity. What price should she charge and what quantity should be sold to achieve that goal?

b. One person in the management group is arguing for a lower price as a way to sell more gallons and increase revenue. Is this a good suggestion?

The price is $15. In the table what is Antoinette consumer surplus ?

A. A consumer with Cobb-Douglas utility function U(x₁, x₂) =sqrt(x₁x₂)has Marshallian demand x₁(p, I) = I/2p₁ , x₂(p, I) =I/2p₂ and Hicksian Demand h₁(p, u) = u * sqrt(p₂/p₁) and h₂(p,u) = u* sqrt(p₁/p₂).

Initially the consumer has a budget I= 100 and prices are p₁=p₂= 4. Then the price of good 1 increses to p₁^'= 8.

(a) What is the the compensating variation associated with this price increase?

(b) What is the equivalent variation?

B. A consumer has utility functionU(x₁, x₂) =√x₁+√x₂.

(a) Compute his indirect utility function and Marshallian demand function.

(b) From the indirect utility function, deduce his expenditure function.

(c) Use Shephard’s lemma to obtain his Hicksian demand function.

Each of the following gross profit percentages is expressed interms of cost. 1. 23%. 2. 29%. 3. 38%. 4. 58%. Indicate the grossprofit percentage in terms of sales for each of the above. (Roundratios to 2 decimal places, e.g. 78.70%.) Gross profit in terms ofcost Gross profit in terms of sales 1. 23% % 2. 29% % 3. 38% % 4.58% %

Exercise 9-13

Each of the following gross profit percentages is expressed interms of cost.

Indicate the gross profit percentage in terms of sales for each ofthe above.

I thought I computed everything correclty. Can someone help withthe visual please.

 write a program that maintains student records.
The essentials of the program.
1. Create a class that keeps the following data of each student
a) The first and last name of a student
b) The GPA
c) The student identification number (each will be 5 digits long)

2. This class will have 5 methods:
a) A get and set method only for the GPA and ID
b) A method that displays the student information on three lines.

3. There should be a constructor that allows for input of first name and last name only.

4. Create a second class that tests the operation of the other class.

5. Create two objects with the following data
a) Tom Thumb who has a 2.76 GPA and an ID of 35791
b) Snow White who has a GPA of 3.35 and an Id 24680

6. The second class should display the contents of each object.

Which of the following actions by the Federal Reserve would reduce the money supply? (You can only answer once)

an open-market purchase of government bonds

a reduction in banks’ reserve requirements

an increase in the interest rate paid on reserves

a decrease in the discount rate on Fed lending

Which of the following actions by the fed would reduce the money supply:

a. the open market purchase of government bonds.

b. a reduction in the banks' reserve requirement.

c. an increase in the interest rate paid on reserves. 

d. a decrease in the discount rate on FED lending.

Which of the following actions by the fed reduce the money supply?

a. an open market purchase of government bonds. 

b. a reduction in the banks' reserve requirements. 

c. an increase in the interest rate paid on reserves. 

d. a decrease in the discount rate on Fed lending.