Economics 1021A/B Study Guide - Midterm Guide: Marginal Cost, Perfect Competition, Deadweight Loss

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: All

Document Summary

Instructions: the examination begins at 1:00 p. m. and ends at 3:00 p. m, check that your examination paper contains 19 pages, use a black pencil to complete your scantron form. Note: questions are printed on both sides of each page. Choose the one alternative that best completes the statement or answers the question. Then the government raises the minimum wage to per hour, and 900 units are now hired. As a result, he decides to purchase 24 percent more bubble gum each week. The income elasticity of fred"s demand for bubble gum is: 1. 33, 0. 75, 24, 0. 32, 0. 24. Use the figure below to answer the following questions. If the level of output is 200 units, the deadweight loss is area: dce, ach, acg, hcg, bcf, refer to figure 3. If the level of output is 150 units, the producer surplus is area: acg, bcf, hcg, ach, dce.