ECO 2023 Final Exam Questions

ECO 2023 Final Exam Questions a combination of goods on a given PPF is - ✔✔Both obtainable and Efficient For a normal good, if INCOME goes UP, what happens to supply? Demand? - ✔✔Demand shifts right and the supply rem ...

ECO 2023 Final Exam Questions a combination of goods on a given PPF is - ✔✔Both obtainable and Efficient For a normal good, if INCOME goes UP, what happens to supply? Demand? - ✔✔Demand shifts right and the supply remains unchanged For an inferior good, if INCOME goes UP, what happens to supply? Demand? - ✔✔Demand shifts left and the supply remains unchanged bananas and oranges are perfect substitutes. If the PRICE of bananas goes UP, what happens to the demand for oranges? the Supply curve? - ✔✔demand shifts right and supply remains unchanged peanut butter and jelly are complements. If the PRICE of peanut butter goes UP, what happens to the demand curve for jelly? the supply curve? - ✔✔demand shifts left. Supply remains unchanged if technology used in corn production increases, what happens to the supply curve for corn? the demand curve? - ✔✔shifts the supply curve right. the demand curve remains unchanged show an equilibrium price and quantity on a supply and demand curve - ✔✔where the demand and supply curve intersect when the price is above equilibrium price, a ________ results. - ✔✔surplus when the price is below equilibrium price, a __________ results - ✔✔shortage if the supply curve shifts to the right and the demand curve remains the same, what happens to price and quantity - ✔✔the price will fall and the quantity will increase if the supply curve shifts to the left and the demand curve remains the same, what happens to price and quantity - ✔✔the price will rise and the quantity demanded will decrease if the demand curve shifts to the right and the supply curve remains the same what happens to price and quantity - ✔✔price will rise and the quantity will increase if the demand curve shifts to the left and the supply curve remains the same what happens to price and quantity - ✔✔price will fall and the quantity will decrease is the elasticity of demand for a given curve the same at all points - ✔✔no. the elasticity varies along a given demand curve as you move up and to the left along a demand curve, what happens to point elasticity - ✔✔it increases what determines whether a good's demand is elastic or not - ✔✔the substitutability of the good if your at a point where elasticity is equal to 1.2 and you raise prices, what will to total revenue? - ✔✔total revenue will decrease if your at a point where elasticity is equal to .4 and you raise prices, what will happen to total revenue - ✔✔total revenue will increase if income elasticity of demand (E(Y)) is negative then the good is a(n) ___________ good - ✔✔inferior if income elasticity of demand (E(Y)) is positive then the good is a(n) ___________ good - ✔✔normal if cross price elasticity of demand (E(C)) is positive then the two goods in question are ______________. - ✔✔substitutes if the cross price elasticity of demand (E(C)) is negative, the the two goods in question are ______________. - ✔✔complements does society, on the whole, win or lose from a monopoly - ✔✔lose, only the monopolist himself wins from a monopoly situation. a monopoly causes deadweight loss, and thus monopolies are on the whole bad for society true or false: in the short-run, it is possible for a monopoly to earn an economic profit, but in the long-run, all monopolies can make is a normal profit. - ✔✔false because there a significant barriers to entry, a monopoly can earn an economic profit indefinitely describe the conditions necessary for economic profit, normal profit, and economic loss in a monopoly situation. - ✔✔if P>ATC, a firm earns an economic profit If P=ATC, a firm earns a normal profit if P [Show More]