BUEC 232 Quiz: 4.pdf

19. At the point on the demand curve where Q = 10 and P=70, the elasticity of demand, expressed as a positive number, is: A) O B) 1 C) 1/5 D) 5 E) 1/7 F) 7 G) 5/7 H) 715 1) 35 J) 1/35 K) 10/7 L) 7/10 M) 40 N) 1/40 0) 12/7 P) 7/12 Q) 12/5 R) 5/12 S) 2/5 T) 5/2 U) 2 V) 1/2 W) 2/25 X) 25/2 Y) none of the above

20. At the point on the demand curve where Q = 16 and P = 40, the elasticity of demand, expressed as a positive number, is: A)0 B) 1 C) 1/5 D) 5 E) 1/7 F) 7 G) 5/7 H) 7/5 1) 35 J) 1/35 K) 10/7 L) 7/10 M) 40 N) 1/40 O) 12/7 P) 7/12 Q) 12/5 R) 5/12 S) 2/5 T) 5/2 U) 2 V) 1/2 W) 2/25 X) 25/2 Y) none of the above

What are the short-run equilibrium values of Y and r when P = 3?

Consumption: C = 310 + 0.6(Y - T) - 100r
Investment: I = 150 - 350r
Net Exports: NX = - 0.1Y - 50r + 0.1YFor + 1000rFor
Government purchases: G = 365
Taxes: T = 275
Foreign real income: Y For = 1200
Foreign real interest rate: rFor = 0.01
Nominal money supply: M = 4800
Real money demand: L = 1000 + 0.4Y - 400r