FINAL MOCK QUIZ

Goods that are bought and used together are 

• complementary goods

• substitute goods

• income goods

• unrelated goods

The diagram represents a

• increase in demand

• decrease in demand

• change in quantity demand

• none of the above

Which of the following is likely to increase the demand for peanut butter?

• Fewer children in the population

• News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months.

• A big increase in the price of jelly.

• A report from the Surgeon General of the United States that eating peanut butter makes people nutty.

The demand curve is
Q = 100 − 2p
What’s the elasticity when p = 14? (Point Elasticity)

• -0.39

• -1

• -2

• -9

Which of the following products would likely have an inelastic demand?

• Fizzy cola, a carbonated soda

• A meal at an expensive steak house

• auto repair for your car

• Nike's Air Force One's

1. Given the following market demand and supply functions:

Qd = 90 − p + 0.02I (Demand)

Qs = −18 + p (Supply)

where I = consumers’ average income. Solve for the equilibrium price

when I = 3000.

• p=66, q=66

• p=84, q=66

• p=66, q=84

• p=30, q=45

1. When Apple raised the price of an iTunes single from $0.90 to $1.20, the sales of the single dropped from 17542 to 12312 units. What was the song’s arc elasticity of demand?

• 1. -1.249

• 1. -1

• -1.228

• 0

What is the formula for the slope of the isoquant in the context of cost minimization?

• MRTS = MPL / MPK

• MRTS = w / r

• MRTS = -w / r

• MRTS = -MPL / MPK

The gap between ATC and AVC is 

• MC.

• AFC.

• TC.

• AC

Which market structure best describes​ the industry of auto industry?

• Oligopoly

• Monopoly

• Perfect Competition

• Monopolistic Competition