Download 姓名: 學號: Homework2 Economics (I), 2013 Due Date: 2013.10.29

姓名:
學號:
Homework2
Economics (I), 2013
Due Date: 2013.10.29
Part I. Multiple Choices (50 points: 5 points of each )
Please fill your answers in below blanks.
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Figure 1
1. Refer to Figure 1. A technological advancement would be represented by a
movement from
A) A to B.
B) S1 to S2.
C) B to A.
D) S2 to S1.
2. At a product's equilibrium price
A) any buyer who is willing and able to pay the price will find a seller for the
product.
B) the federal government will provide the product to anyone who cannot afford
it.
C) not all sellers who are willing to accept the price will find buyers for their
products.
D) anyone who needs the product will be able to buy the product, regardless of
ability to pay.
3. The law of demand implies, holding everything else constant, that as the price of
yogurt
A) decreases, the quantity of yogurt demanded will decrease
B) increases, the quantity of yogurt demanded will decrease.
C) decreases, the demand for yogurt will increase.
D) increases, the demand for yogurt will increase.
Figure 2
4. Refer to Figure 2. If the price is $25,
A) there would be a surplus of 300 units.
B) there would be a shortage of 300 units.
C) there would be a surplus of 200 units.
D) there would be a shortage of 200 units.
5. A demand curve which is ________ represents perfectly inelastic demand, and a
demand curve which is ________ represents inelastic demand.
A) downward sloping; vertical
B) vertical; downward sloping
C) horizontal; downward sloping
D) upward sloping; horizontal
6. A demand curve that is horizontal indicates that the commodity
A) has few substitutes.
B) is a necessity.
C) has a large number of substitutes.
D) must be very cheap.
7. Which of the following would cause the equilibrium price of ketchup to increase
and the equilibrium quantity of ketchup to decrease?
A) an increase in the price of french fries, a complement for ketchup
B) a decrease in the price of tomatoes
C) an increase in the price of tomatoes
D) an increase in the price of mustard, a substitute for ketchup
8. A decrease in the demand for eggs due to changes in consumer tastes,
accompanied by a decrease in the supply of eggs as a result of an outbreak of
Avian flu, will result in
A) a decrease in the equilibrium price of eggs and no change in the equilibrium
quantity.
B) a decrease in the equilibrium price of egg; the equilibrium quantity may
increase or decrease.
C) a decrease in the equilibrium quantity of eggs and no change in the
equilibrium price.
D) a decrease in the equilibrium quantity of eggs; the equilibrium price may
increase or decrease.
9. When there few close substitutes available for a good, demand tends to be
A) perfectly elastic.
B) relatively inelastic.
C) perfectly inelastic.
D) relatively elastic.
10. The price elasticity of demand for Stork ice cream is -4. Suppose you're told
that following a price increase, quantity demanded fell by 10 percent. What was
the percentage change in price that brought about this change in quantity
demanded?
A) 0.4 percent
B) 2.5 percent
C) 25 percent
D) 40 percent