Reference no: EM133211274

Assignment - Economics Multiple Choice Questions

Q1) Suppose that the percentage change in demand is 10%, the price elasticity of supply is 2, and the percentage change in the equilibrium price is 3.33%. What is the price elasticity of demand?

A) 0

B) 1

C) 2

D) 3

Q2) The quantity supplied of hot dogs is 200 at the unit price of $3.50. Suppose the price elasticity of supply by the initial value method is 2, and you would like to induce sellers to increase the quantity of hot dogs supplied to 220. Then new price must be:

A) $1.5.

B) $2.

C) $2.5.

D) $3.

Q3) Jane is a student at a university. She pays $10,000 per year in tuition, $4,000 per year in living expenses, and $800 per year for books. Were she not in school, she could earn $20,000 per year working as a bookkeeper and she would not live with her parents. What is her economic cost of a year in college?

A) $10,000

B) $13,000

C) $30,800

D) $34,800

7) In the short run, the marginal cost of the first unit of output is $20, the marginal cost of producing the second unit of output is $16, and the marginal cost of producing the third unit of output is $12. The firm's total variable cost of producing three units of output is:

A) $12.

B) $16.

C) $20.

D) $48.