ECON 100A Study Guide - Midterm Guide: Peanut Butter, Economic Equilibrium, Substitute Good
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Qs = 5p: refer to scenario 2. 1. What is the equilibrium price of books: 5, 10, 15, 20, none of the above. What is the equilibrium quantity of books sold: 25, 50, 75, 100, none of the above. Answer: d: the cross-price elasticity of demand for peanut butter with respect to the price of jelly is -0. 3. If we expect the price of jelly to decline by 15%, what is the expected change in the quantity demanded for peanut butter: +15, +45, +4. 5, -4. 5% Answer: c: a simple linear demand function may be stated as q = a - bp + ci where q is quantity demanded, p is the product price, and i is consumer income. Answer: a: an individual consumes only two goods, x and y. Which of the following expressions represents the utility maximizing market basket: mrsxy is at a maximum, px/py = money income, mrsxy = money income, mrsxy = px/py, all of the above.
