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WorksheetsS1W6
Total questions: 12
Worksheet time: 12mins
Vlad the Vampire spends all his income on blood and bats. His demand curve for bats is elastic.
True or false: If the price of bats rises, he consumes more blood. Explain.
True
False
Suppose your budget is spent entirely on two goods: pumpkins and Lidl’s own brand halloween
sweets. If pumpkins are an inferior good, can halloween sweets be inferior as well?
Yes
No
Which of these are examples of inferior goods:
Hotel Chocolat Halloween Chocolates
Toffee apples on reduced to clear, because the packaging is damaged.
A second-hand halloween costume in the charity shop
Tesco Finest Cobweb Cheesecake
Suppose the demand curve for halloween sweets is given by P = 100 − 1/3 Q. Find the elasticity
of demand when P = 30.
Is the quantity of pumpkins demanded during Halloween responsive or unresponsive to a change in price? What about the responsiveness to the price of a specific firm?
Responsive, Unresponsive
Unresponsive, Unresponsive
Unresponsive, Responsive
Responsive, Responsive
On Halloween night Jack and his friends went trick or treating. A very generous household gave Jack a $100 bill. Jack was delighted and immediately thought to use this money to buy his costume for next year, a high-quality Jack the Reaper costume. On November 1st, the costume he had in mind dropped in price by a third. True, False, or Uncertain: Jack will always buy more costumes.
True
False
Uncertain
In 2021 the Edinburgh Bargain store sold the chucky mask and the chucky overalls separately. In
2021 the mask cost €15 and sold 300 units. The overalls cost €10 and sold 200 units. In 2022,
they increased the price of the overalls to €15 and sold 100 units instead. The price of the mask
stayed at €15 but instead only sold 200 units. Calculate the cross-price elasticity of demand for
the mask with respect to the overalls in 2021, and determine whether the goods are substitutes
or complementary goods.
The week before Halloween Dracula was trying to gain a better understanding of the elasticity of demand. He feels that a better understanding of this will give him an understanding of why he chooses to buy blood at certain prices but not others. Which of the following formulas shows how Dracula could calculate the price elasticity of demand?
ε=ΔPΔQ×QP
ε=slope1×QP
ε=%ΔP%ΔQ
All of the above.
Wednesday wants to pick a dress for the coming Halloween Party. Suppose the market for black dresses is currently untaxed, and that P = €10 and Q = 1000 units. Now the government is considering imposing a tax of €1 per unit on suit sales. Other things being equal, which of the following conditions will result in a relatively small change in the number of black dresses sold?
i. The supply curve is highly inelastic
ii. The supply curve is highly elastic
iii.The demand is highly inelastic
iv. The demand curve is highly elastic curve
A all of the above
B i, iii
C ii, iii
D iii, iv
E i, iv
If one extra candy apple raises Steve’s utility by 6 units and one extra jellybean will increase it by 4 units, what must be the price of a candy apple if the jellybean costs $6?
(a)
Conde Dracula, the owner of the titular Hotel Transylvania,has loaned Jonathan, $100 to celebrate the 119th birthday of his beloved daughter Mavis. At the end of the year, Jonathan writes Dracula a check for $100 to pay off this loan. If the annual interest rate on Dracula's savings account is 1% and the inflation rate is 2% and Dracula has large outstanding credit card debts with an interest rate of 15 %, what was Dracula's opportunity cost of making this loan?
0%
1%
15%
3%
The demand curve for scream cheese is
Q=-5p +100 , where Q equals the quantity and P equals the price of the scream cheese .
Find the point elasticity when p=5
(a)
