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Midterm

# ECON 132 Midterm: Practice Questions+Solutions for Midterm #1Exam

Department
Economics
Course Code
ECON 132
Professor
Richard Carson
Study Guide
Midterm

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Econ 132 - Problem Set 1 - Spring 2017
DUE: Tuesday, April 25th, 2017
1 Conversions
a. How many million British Thermal Units (MMBtu) are in 642 thousand cubic feet
(642 Mcf) of natural gas?
642 Mcf Ã—1.035 MMBtu
Mcf =664.7 MMBtu
b. How many million British Thermal Units (MMBtu) are in 16,000 pounds of coal?
16,000 pounds Ã—1short ton
2,000 pounds Ã—25.0MMBtu
1short ton =200 MMBtu
c. How many million British Thermal Units (MMBtu) are in 42 blue barrels of oil?
42 bbl Ã—5.8MMBtu
bbl =243.6 MMBtu
d. How many short tons of coal are equivalent in energy to 150 barrels of oil?
150 bbl Ã—5.8MMBtu
bbl Ã—1short ton
25 MMBtu =34.8 short tons
e. How many blue barrels (bbl) of oil are equivalent in heat energy content to 6 million cubic
feet (MMcf) of natural gas?
6MMcf Ã—1000 MCF
1MMcf Ã—1.035 MMBtu
Mcf Ã—1bbl
5.8MMBtu =1070.7 bbl
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2 Thermal Eï¬ƒciency
a. The Sundance Generating Station in Pinal County, Arizona uses 5,250 Btu of energy to
generate each kilowatt hour of electricity. Find its thermal eï¬ƒciency (round and express
as a percentage with no decimal point).
3,412 Btu/kWh
5,250 Btu/kWh = 0.65 â‡’65%
b. Momâ€™s Friendly Generating Station in Syracuse, NY has a thermal eï¬ƒciency of 37%. How
many million cubic feet (MMcf) of natural gas are needed to generate 350 megawatt hours
of electricity?
350 MWh Ã—1,000 kWh
MWh Ã—3,412 Btu/kWh
0.37 Ã—1MMBtu
1,000,000 Btu Ã—1Mcf
1.035 MMBtu Ã—1MMcf
1000 Mcf
=3.1 MMcf
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3 Elasticities
a. (Point Elasticity) Find the point elasticity of a consumer with demand for gasoline given
by the function q= 75 âˆ’5pâˆ’0.5p2when the price is \$3.00 per gallon.
Ç«point =
dQ
Q
dp
p
=dQ
dp Ã—p
Q
p= \$3
Q(p) = 75 âˆ’5pâˆ’0.5p2
Q(3) = 75 âˆ’5âˆ—3âˆ’0.5âˆ—9
= 55.5
dQ
dp =âˆ’5âˆ’p
=âˆ’8
Ç«point =âˆ’8âˆ—3
55.5
=âˆ’0.432
b. (Arc Elasticity) Find the arc elasticity of a consumer who uses 14 gallons of gasoline per
week when the price is \$3.25 per gallon, and 16 gallons of gasoline per week when the price
is \$2.50 per gallon.
Ç«arc =Q2âˆ’Q1
0.5(Q1+Q2)î€ŽP2âˆ’P1
0.5(P1+P2)
=16 âˆ’14
0.5(16 + 14) î€Ž2.50 âˆ’3.25
0.5(3.25 + 2.50)
= 0.1333/(âˆ’0.26)
=âˆ’0.51
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