Managerial Economics Surprise Test - August 5, 2024

Managerial Economics - Surprise test Date: August 5, 2024 Name: …………………………… Roll / ID number………………… Section ……………. Indicate the answer choice that best completes the statement or answers the question. 1. Refer to Table 1 and answer the following questions Pr...

Managerial Economics - Surprise test Date: August 5, 2024 Name: …………………………… Roll / ID number………………… Section ……………. Indicate the answer choice that best completes the statement or answers the question. 1. Refer to Table 1 and answer the following questions Price (Rs) Quantity Quantity Demanded Supplied 10 10 60 8 20 45 6 30 30 4 40 15 2 50 0 1. If the price were Rs 4, a a. surplus of 15 units would exist, and price would tend to fall. b. shortage of 25 units would exist, and price would tend to rise. c. surplus of 25 units would exist, and price would tend to fall. d. shortage of 40 units would exist, and price would tend to rise. Answer: ……………….. 2. The equilibrium price and quantity, respectively, are a. Rs 2 and 50 units. b. Rs 6 and 30 units. c. Rs 6 and 60 units. d. Rs 12 and 30 units. Answer: ……………….. 3. If a good is normal, then an increase in income will result in a(n) a. increase in the demand for the good. b. decrease in the demand for the good. c. movement down and to the right along the demand curve for the good. d. movement up and to the left along the demand curve for the good. Answer: ………………..  Managerial Economics - Surprise test Date: August 5, 2024 Relationship between Price and Restaurant Meals 4. Refer to the Figure above: A movement from point A to point Z is called a. a shift in demand. b. a movement along the demand curve. c. a shift in supply. d. a movement along the supply curve. Answer: ……………….. 5. Refer to Figure above: A movement from point A to point B is called a. a shift in demand. b. a movement along the demand curve. c. a shift in supply. d. a movement along the supply curve. Answer: ……………….. 6. Demand is said to be inelastic if a. buyers respond substantially to changes in the price of the good. b. demand shifts only slightly when the price of the good changes. c. the quantity demanded changes only slightly when the price of the good changes. d. the price of the good responds only slightly to changes in demand. Answer: ………………..  Managerial Economics - Surprise test Date: August 5, 2024 7. Goods with many close substitutes tend to have a. more elastic demands. b. less elastic demands. c. price elasticities of demand that are unit elastic. d. income elasticities of demand that are negative. Answer: ……………….. 8. Between point A and point B, price elasticity of demand using the midpoint method is equal to Options a. 0.71. b. 0.85. c. 1.18. d. 1.40. Answer: ………………..  Managerial Economics - Surprise test Date: August 5, 2024 Calculate based on the following graph 9. Refer to the figure above At the equilibrium price, producer surplus is a. 125. b. 300. c. 450. d. 150. Answer: ……………….. 10. Refer to the figure above At the equilibrium price, consumer surplus is a. 450. b. 50. c. 200. d. 100. Answer: ………………..