DEVRY ECO312 WEEK 2 WEEKLY ASSIGNMENT

Question 1. Question
:
(TCO 2) Economists use the term “demand” to refer
to

:
a particular price-quantity combination on a stable demand curve.
the total amount spent on a particular
commodity over a stipulated time period.
an upsloping line on a graph that relates
consumer purchases and product price.
a schedule of various combinations of market
prices and quantities-demanded.

Question 2. Question
:
(TCO 2) Which of the following will not cause the demand for
product K to change?

:
A change in the price of close-substitute product J
An increase in consumer incomes
A change in the price of K
A change in consumer tastes

Question 3. Question
:
(TCO 2) If X is a normal good, a rise in money income will
shift the

:
supply curve for X to the left.
supply curve for X to the right.
demand curve for X to the left.
demand curve for X to the right.

Question 4. Question
:
(TCO 2) Which of the following would mostly likely increase
the demand for gasoline?

:
The expectation by consumers that gasoline prices will be higher in the future
The expectation by consumers that gasoline
prices will be lower in the future
A widespread shift in car ownership from SUVs
to hybrid sedans
A decrease in the price of public
transportation

:

Question 5. Question
:
(TCO 2) The supply curve shows the relationship between

:
price and quantity supplied.
production costs and the amount demanded.
total business revenues and quantity supplied.
physical inputs of resources and the resulting
units of output.

Question 6. Question
:
(TCO 2) If the demand for bacon is relatively elastic, a 10%
decline in the price of bacon will

:
decrease the amount demanded by more than 10%.
increase the amount demanded by more than 10%.
decrease the amount demanded by less than 10%.
increase the amount demanded by less than 10%.

Question 7. Question
:
(TCO 2) If the price of hand calculators falls from $10 to
$9 and, as a result, the quantity demanded increases from 100 to 125, then

:
demand is elastic.
demand is inelastic.
demand is of unit elasticity.
not enough information is given to make a
statement about elasticity.

Question 8. Question
:
(TCO 2) The concept of price elasticity of demand measures

:
the slope of the demand curve.
the number of buyers in a market.
the extent to which the demand curve shifts as
the result of a price decline.
the sensitivity of consumer purchases to price
changes.

Question 9. Question
:
(TCO 2) If the University Chamber Music Society decides to
raise ticket prices to provide more funds to finance concerts, the Society is
assuming that the demand for tickets is

:
parallel to the horizontal axis.
shifting to the left.
inelastic.
elastic.

Question 10. Question
:
(TCO 2) The more time consumers have to adjust to a change
in price

:
the smaller will be the price elasticity of demand.
the greater will be the price elasticity of
demand.
the more likely the product is a normal good.
the more likely the product is an inferior
good.

Question 11. Question
:
(TCO 2) What is the Law of Supply? Why does the supply curve
slope upwards?

:

Comments: quantity supplied.

Question 12. Question
:
(TCO 2) Suppose the price of widgets rises from $5 to $7 and
consumption of widgets falls from 25 widgets a month to 15 widgets. Calculate your
price elasticity of demand of widgets. What can you say about your price
elasticity of demand of widgets? Is it Elastic, Inelastic, or Unitary Elastic?
Why? Use the Midpoint formula and please show your work.