UGBS 201 Quiz 1 Sample PDF

UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. UGBS 201 Quiz Preparation Guide As you prepare for your first UGBS 201 quiz, here’s wha...

UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. UGBS 201 Quiz Preparation Guide As you prepare for your first UGBS 201 quiz, here’s what you need to know: 1. You will answer 20 questions in 30 minutes. 2. 0.25 marks will be deducted for each wrong answer. 3. You have two attempts to take the quiz. Topics to Cover: Elasticity Consumer Behaviour (Utility) Market Analysis Demand and Supply Preparation Tips: 1. Go through all topics treated in class so far. 2. Use the test bank we’ve provided to practice more questions. 3. Time yourself while practicing to improve speed and accuracy. 4. Focus on answering carefully to avoid unnecessary deductions. If you have any questions or concerns, feel free to reach out for clarification. Best of luck… As you move up along a straight-line demand curve, November 20, 2023 1 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. the price elasticity of demand decreases in size. the price elasticity of demand increases in size. total revenue always decreases. total revenue always increases. total revenue never changes. A ________ curve means that ________. horizontal demand; a change in price does not change total revenue horizontal demand; the elasticity of demand is less than 1 horizontal supply; the elasticity of supply is infinite horizontal supply; the elasticity of demand is infinite vertical demand; a change in price does not change total revenue The demand for food (a broad group) is more: elastic than the demand for beef (specific commodity). inelastic than the demand for beef (specific commodity). sensitive to price changes than the demand for beef. responsive to price changes than the demand for beef. All of the following statements are true EXCEPT the demand for food is less elastic than the demand for a Hawaiian vacation. the demand for clothing is less elastic than the demand for blue jeans. the smaller the proportion of income spent on a good, the more inelastic demand will be. the demand for Nike running shoes is less elastic than the demand for shoes. If a 5 percent change in price leads to a ________ percent change in the quantity demanded, then demand is ________. 2; elastic 5; unit elastic 3; perfectly inelastic 6; inelastic November 20, 2023 2 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. 0; perfectly elastic If the income elasticity of demand for a good is 2, then when income rises 10 percent, the quantity demanded….. increases 2 percent. increases 20 percent. decreases 2 percent. decreases 20 percent. Racheal owns a sandwich shop. The price of a sandwich recently increased from $5 to $7. Racheal responded by increasing the quantity of sandwiches she supplied from 70 to 90 per day. Using the midpoint method, Racheal's price elasticity of supply is equal to 1.33. 0.75. 3.00. 4.00. 1.50. Sergio's rentals of Blu-ray movies increase by 10 percent when her income increases by 30 percent. Based on this information, we know that for Sergio Blu-ray movies are complements. are substitutes. are inferior goods. are normal goods. If the price elasticity of demand for a good is 2, then a 10 percent increase in the price of that good ________ the quantity demanded by ________ percent. increases; 20 decreases; 2 decreases; 10 decreases; 20 increases; 8 If the own price elasticity of demand is infinite in absolute value, then: November 20, 2023 3 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. demand is perfectly inelastic. the demand curve is horizontal. consumers do not respond at all to changes in price. demand is neither perfectly inelastic nor is the demand curve horizontal. Demand is more inelastic in the short term because consumers: are impatient. have no time to find available substitutes. are present-oriented. None of the statements is correct. If demand is ________, a price cut ________ the total revenue. elastic; increases unit elastic; decreases inelastic; increases inelastic; does not change normal; decreases When hamburger is $3 per pound, Ms. RNN buys 6 pounds. When hamburger is $2 per pound, Ms. RNN buys 10 pounds. Describe Ms. RNN's demand between these two prices. elastic unit elastic inelastic perfectly inelastic perfectly elastic Demand is price inelastic if ________ percentage change in the price leads to a ________ percentage change in the quantity demanded. a small; large a large; small November 20, 2023 4 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. any; large Both answers A and B are correct. None of the above answers is correct. If the demand for a good is elastic, then people do not change the quantity they demand when the price of the good changes. a change in price leads to a smaller percentage change in the quantity demanded. people substantially decrease the quantity of the good they buy if its price increases by a small percentage. a change in the quantity demanded is smaller than the change in price. the quantity demanded divided by the price exceeds 1.00. If a small percentage change in the price brings a very large percentage change in the quantity supplied, then the supply is almost perfectly ________ and the supply curve is almost ________. elastic; vertical elastic; horizontal inelastic; horizontal inelastic; vertical elastic; 45 degrees Suppose the current price of barley is $7 per bushel and at that price 100,000 bushels are grown by a Colorado farmer. If the price of barley rises to $8 and quantity supplied increases to 130,000 bushels, then using the midpoint method, the price elasticity of supply for barley equals 13.33. 26.78. 1.96. November 20, 2023 5 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. 0.51. zero. If a lower price for a Pepsi decreases the demand for a Coke, the cross elasticity value for Pepsi and Coke is definitely negative. definitely equal to zero. definitely positive. definitely greater than one. If the cross elasticity of demand between car insurance and new cars is -0.41, then car insurance and new cars are complements. substitutes. normal goods. inferior goods. Pete feeds his dog 100 percent more Pup-Peronis when Zuke's treats increase in price by 50 percent. For Pete, Pup-Peronis and Zuke's are ________ and the cross-price elasticity of demand is ________. complements; -1/2 substitutes; 2 substitutes; -2 complements; 2 To determine the price elasticity of demand, we B need to know how much is available. need information on consumers' incomes. November 20, 2023 6 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. compare the percentage change in the quantity demanded to the percentage change in the price. compare the change in the quantity to the change in price. divide the quantity by the price. The demand for which of the following commodities is likely to be most price inelastic? Food Hamburgers Big Macs Sandwiches November 20, 2023 7 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. November 20, 2023 8 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. November 20, 2023 9 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. November 20, 2023 10 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. November 20, 2023 11 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. November 20, 2023 12 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. November 20, 2023 13 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. November 20, 2023 14 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. November 20, 2023 15 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. November 20, 2023 16 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. November 20, 2023 17 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. November 20, 2023 18 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. November 20, 2023 19 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. When the price of a burrito increases from $2 to $4, the quantity demanded decreases from 50 to 40. Using the midpoint method, the price elasticity of demand equals 1/3. 3. 2. 1. 1/2. In an attempt to boost their incomes, many barbers raised the price of a haircut and yet their total revenue fell even more. What can explain this result? The demand for haircuts by barbers is elastic because of many substitutes. The demand for haircuts by barbers became inelastic after the increase in price. Haircuts are inferior products. The demand for haircuts by barbers is inelastic because most people need haircuts. None of the above can explain the phenomenon. November 20, 2023 20 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. If the demand for a good is elastic, then people do not change the quantity they demand when the price of the good changes. a change in price leads to a smaller percentage change in the quantity demanded. people substantially decrease the quantity of the good they buy if its price increases by a small percentage. a change in the quantity demanded is smaller than the change in price. the quantity demanded divided by the price exceeds 1.00. In the mid-1970s, Newsweek magazine reported that the city of Atlanta lowered its city bus fares from 40 cents to 15 cents a passenger. The number of bus riders increased by 15 percent after the fare cut. This set of results indicates that the demand for bus rides in Atlanta at that time was unit elastic. perfectly inelastic. elastic. inelastic. perfectly elastic. You own a small store. Your cashier thinks you should raise prices to increase your total revenue and your customer thinks you should lower prices to increase your total revenue. The cashier thinks the price elasticity of demand is ________ and the customer believes the price elasticity of demand is ________. inelastic; elastic elastic; inelastic elastic; elastic inelastic; inelastic unit elastic; elastic November 20, 2023 21 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. If the price elasticity of demand for razors is 0.32, the demand for razors is elastic. unit elastic. inelastic. perfectly inelastic. Which of the following statements is correct for the price elasticity of demand along a linear, downward-sloping demand curve? The price elasticity of demand is constant because the slope is constant. At low prices, demand is elastic but at high prices demand is inelastic. At high prices, demand is elastic but at low prices demand is inelastic. The price elasticity of demand is not defined for a linear demand curve because the slope is constant. None of the above answers is correct. During last year the price of regular unleaded gasoline in Oakland, California increased 11.0 percent. If the price elasticity of demand for gasoline was 0.13, the price hike means that the quantity demanded decreased by 1.43 percent. 8.46 percent. 0.16 percent. 4.31 percent. 6.46 percent. When the price of a textbook is $95, the quantity of textbooks supplied is 90 million a year and when the price rises to $105, the quantity of textbooks supplied is 110 million a year. The supply of textbooks is elastic November 20, 2023 22 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. perfectly elastic inelastic perfectly inelastic unit elastic. A price elasticity of zero corresponds to a demand curve that is: horizontal. downward sloping with a slope always equal to 1. vertical. either vertical or horizontal. Using the midpoint method, if the price of an airline ticket from Orlando to Pittsburgh falls from $275 to $238, the percentage change in price is. 1442 percent. 14.42 percent. 15.54 percent. 13.45 percent. 68.00 percent. The elasticity which shows the responsiveness of the demand for a good due to changes in the price of a related good is the: own price elasticity. income elasticity. log-linear elasticity. cross-price elasticity. November 20, 2023 23 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. If the cross-price elasticity between goods A and B is negative, we know the goods are: inferior goods. complements. inelastic. Substitutes Suppose the current price of barley is $7 per bushel and at that price 100,000 bushels are grown by a Colorado farmer. If the price of barley rises to $8 and quantity supplied increases to 130,000 bushels, then using the midpoint method, the price elasticity of supply for barley equals 13.33. 26.78. 1.96. 0.51. zero. Suppose the University of Oklahoma increases the price of student football tickets for the 2012 season by 30 percent. If the price elasticity of demand for student tickets is 1.22, the price increase leads to a 36.6 percent decrease in the quantity demanded. a 30 percent decrease in the quantity demanded. a 1.22 percent decrease in the quantity demanded. 28.78 percent decrease in the quantity demanded. no change in the quantity demanded. If two goods are ________, then an increase in the price of one lead to ________ in the quantity demanded of the other. complements; a decrease November 20, 2023 24 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. complements; no change substitutes; a decrease substitutes; no change One reason why the demand for gasoline is inelastic is because substitutes for gas abound. substitutes for gas are hard to find. people have a long time to shop around for automobiles that use less gas buses run on diesel fuel rather than gasoline. If substitutes for a good are readily available, the demand for that good does not change substantially if the price rises. does not change substantially if the price falls. is inelastic. is elastic. If the price elasticity of supply for a good is 0.75, then the percentage change in the quantity supplied is less than the percentage change in price. the supply is elastic. an increase in the price boosts the quantity supplied by a larger percentage. the supply is inelastic so the demand must also be inelastic. None of the above answers is correct. The greater the amount of time that passes after a price change, the less elastic supply becomes. more elastic supply becomes. November 20, 2023 25 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. more negative supply becomes. steeper the supply curve becomes. None of the above answers is correct If the price elasticity of demand for a product is 2.5, then a price increase of 1.5 percent decreases the quantity demanded by E) 1.00 percent. 1.55 percent. 3.50 percent. 5.00 percent. 3.75 percent. When the price of a textbook is $95, the quantity of textbooks supplied is 90 million a year and when the price rises to $105, the quantity of textbooks supplied is 110 million a year. The supply of textbooks is elastic perfectly elastic inelastic perfectly inelastic unit elastic. If the price elasticity of demand for a product is 2.5, then a price increase of 1.5 percent decreases the quantity demanded by E) 1.00 percent. 1.55 percent. 3.50 percent. 5.00 percent. 3.75 percent. We would expect the demand for jeans to be: November 20, 2023 26 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. more elastic than the demand for clothing. less elastic than the demand for clothing. the same as the demand for clothing. neither more elastic, less elastic, nor the same elasticity as that of the demand for clothing. Lemonade, a good with many close substitutes, should have an own price elasticity that is: unitary. relatively elastic. relatively inelastic. perfectly inelastic. Demand is more inelastic in the short term because consumers are impatient have no time to find available substitutes are present-oriented none of the above If the price of corn increases by 20 percent and the quantity supplied of corn increases by 30 percent, then supply is elastic and the elasticity of supply equals 1.5. inelastic and the elasticity of supply equals 1.5. elastic and the elasticity of supply equals 0.66. inelastic and the elasticity of supply equals 0.66. either elastic or inelastic, but more information about the elasticity of demand is needed to determine which. November 20, 2023 27 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. As you move up along a straight-line demand curve, the price elasticity of demand decreases in size. the price elasticity of demand increases in size. total revenue always decreases. total revenue always increases. total revenue never changes If the price of corn increases by 20 percent and the quantity supplied of corn increases by 30 percent, then supply is elastic and the elasticity of supply equals 1.5. inelastic and the elasticity of supply equals 1.5. elastic and the elasticity of supply equals 0.66. inelastic and the elasticity of supply equals 0.66. either elastic or inelastic, but more information about the elasticity of demand is needed to determine which. When the price of a cup of coffee falls from $3.00 to $2.50, the quantity demanded increases from 1,000 per month to 1,150 per month. Using the midpoint method, the price elasticity of demand is 0.77. 1.30. 0.07. 3.00. 2.50. November 20, 2023 28 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. The price elasticity of demand is a measure of the equilibrium price of a product. buyersʹ responsiveness to changes in the price of a product. the amount of a product purchased when income increases. whether a product is a substitute or a complement. how much a change in demand affects the equilibrium price. The elasticity of demand is used to determine if consumers will or will not buy a product. November 20, 2023 29 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. measure how responsive consumers are to a change in price. determine in what direction the demand curve shifts if income changes. find the market equilibrium. determine if a change in price results in a shortage or a surplus. To determine the price elasticity of demand, we A. need information on consumersʹ incomes. B. need to know how much is available. C. compare the percentage change in the quantity demanded to the percentage change in the price. D. ncompare the change in the quantity to the change in price. E. divide the quantity by the price. Suppose the price of a box of cereal rises from $4 to $6. Using the midpoint method, what is the percentage change in price? A) 50 percent B) 40 percent C) 33 percent D) 67 percent E) None of the above answers is correct. Suppose the price of a DVD rose from $15 to $17 and the quantity demanded decreased from 1,000 per month to 900 per month. Using the midpoint formula, the ________ percent change in price lead to a……………………percent change in the quantity demanded. A) 12.5; 10.5 B) 13.3; 10.0 C) 11.8; 11.1 D) 8.0; 9.5 Using the midpoint method, if the price of an airline ticket from Orlando to Pittsburgh falls from $275 to $238, the percentage change in price is A) 1442 percent. B) 14.42 percent. C) 15.54 percent. D) 13.45 percent. E) 68.00 percent. November 20, 2023 30 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. If the demand for a good is elastic, then A) people do not change the quantity they demand when the price of the good changes. B) a change in price leads to a smaller percentage change in the quantity demanded. C) people substantially decrease the quantity of the good they buy if its price increases by a small percentage. D) a change in the quantity demanded is smaller than the change in price. E) the quantity demanded divided by the price exceeds 1.00. If the percentage change in price is 10 percent and the demand is elastic, then the percentage change in the quantity demanded A) is greater than 0 percent but less than 10 percent. B) is larger than 10 percent. C) equals 0 percent. D) equals 10 percent. E) More information is needed to determine the magnitude of the change in the quantity demanded. November 20, 2023 31 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. If the price of a six-pack of Pepsi falls from $4 to $3 and the quantity purchased increases 80 percent, then demand is A) inelastic. B) elastic. C) unit elastic. D) perfectly inelastic. E) perfectly elastic. Suppose the demand for peaches sold from one roadside stand in Georgia is perfectly elastic. As a result, a 7 percent increase in the price charged by the owner of this stand leads to A) zero peaches sold by this stand. B) no change in the quantity demanded at this stand. C) a 7 percent decrease in the quantity demanded at this stand. D) a 7 percent decrease in demand at this stand. E) a virtually infinite increase in the quantity demanded at this stand. When the percentage change in the quantity demanded is less than the percentage change in price, then demand is A) inelastic. B) unit elastic. C) elastic. D) irrelevant. E) undefined. If the price elasticity of demand for razors is 0.32, the demand for razors is A) elastic. B) unit elastic. C) inelastic. D) perfectly inelastic. E) perfectly elastic. In Ghana, the long-run elasticity of oil demand has been estimated at -0.5. Some policymakers and environmental scientists would like to see Ghana cut back on its use of oil in the long run We can use this elasticity estimate to get a rough measure of how high the price of oil would have to permanently rise in order to get people to make big cuts in oil consumption. How much would the price of oil have to permanently rise in order to cut oil consumption by 50%? 5% b. 25% c. 50% d. 100% When the price of olive oil goes up, what probably happens to the demand for corn oil? November 20, 2023 32 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. The demand for corn oil increases The demand for com oil decreases A change in the price of olive oil has no effect on the demand for cor oil The quantity demanded for corn oil increases A 2 percent increase in income increases the quantity demanded of a good by 1 percent. The income elasticity of demand for this good is---------- the good is a-------------good 2; normal b-2; inferior. c1/2; normal d. 2; inferior When is a pharmaceutical business more likely to hire highly educated, cutting- edge workers and use new, experimental research methods? When the business expects the price of its new drug to be low When the business expects the price of its new drug to be high The pharmaceutical business is unlikely to hire highly educated workers under any price. When the business expects the price not to change If oil executives read in the newspaper that massive new oil supplies have been discovered under the Pacific Ocean but will likely only be useful in 10 years, what is likely to happen to the supply of oil today? a.) The supply of oil will rise today. The supply of oil will fall today. There will be no change in the supply of oil. The quantity of oil that will be supplied today will fall. In the town of Accia, the government declares that all street parking must be free: There can be no parking meters. In an almost identical town of Ada, parking costs $5 per hour (or $1.25 per 15 minutes). Where will it be easier to find parking? Accra Ada November 20, 2023 33 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. indetermination, with the given information. Both Accra and Ada If a government decides to make health insurance affordable by requiring all health insurance companies to cut their prices by 30%, what will probably happen to the number of people covered by health insurance? More people will be covered because it's cheaper and more people can now afford it. Fewer people will be covered because health insurance companies will supply less. The number of insured will not change Indeterminate with the given information. If the government forced all bread manufacturers to sell their products at a "fair price" that was half the current, free-market price, what would happen to the quantity supplied of bread? quantity supplied decreases. quantity supplied increases. Indeterminate with the given information. quantity supplied will stay same With this price control on bread in the question 18, would you expect bread quality to rise or fall? Quality rises Quality falls Indeterminate with the given information. There will be no change in quality Perfect substitutes November 20, 2023 34 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. a, always have indifference curves with slopes of -1. always have indifference curves with slopes of 1. C. have fixed rates of trading off one good for another. have horizontal indifference curves. In a rent-controlled apartment, a landlord will likely do which of the following more often: Rent more apartment provide more unfurnished apartments C ›Discriminate more against applicants Allow more renters per room Which of the following is NOT a consequence of rent controls? A shortage of rental housing. Low-cost rentals will incentivzed migration, leading to overcrowding. Already existing apartment building will be crumbling from lack of maintenance. All of the above are consequences of rent controls. For this question, assume Good X is measured on the X-axis and Good Y is measured on the y axis. A price ratio of 3 means that a consumer is able to trade 1 unit of------------------ for 3 unite a. Good x, good y Good y, good x Suppose the demand for peaches sold from one roadside stand in Georgia is perfectly elasti As a result, a 7 percent increase in the price charged by the owner of this stand leads to zero peaches sold by this stand. no change in the quantity demanded at this stand. a 7 percent decrease in the quantity demanded at this stand. November 20, 2023 35 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052  UGBS 201 QUIZ 2 – THE LET’S KILL IT Killing the Notion of “Me” and “I" For any questions or further assistance, feel free to contact Us. a 7 percent decrease in demand at this stand. November 20, 2023 36 LET’S KILL IT – I.A. DWAMENA[Checar: 0594050164 T.A SADIQ,: 0556436052