ECON 101 Midterm: ECON101 Term Test 2 2009 Spring Solutions
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Econ 101, sections 4 and 5, s09, schroeter. Choose the single best answer for each question. 40% decrease in quantity demanded: when the mu market and cafe cuts its price for 16 oz. . 25, its sales increase, on average, from 28 to 36 cafe mochas per day. Over this range of prices, the own-price elasticity of demand (calculated by the "midpoint method") for. 2. 83: -1. 67, -0. 60, -0. 35, sam"s recycling center recently increased the price that it pays for aluminum cans from sh. 60/lb. to sh. 80/lb. As a result, the volume of recycled aluminum cans it purchases each month increased from an average of 1200 lbs. /month to an average of. Over this range of prices, the elasticity of supply (calculated by the midpoint method) of aluminum cans is. 0. 54: 0. 74, 1. 35, 1. 86, in the competitive market for gizmos, when supply increases, equilibrium price falls by. 10% and the revenue of gizmo producers falls by 8%.
