EC202 Fall 2016 Homework 1 (due Oct 12) Name_______________________ 1. Whic h o f thes e statement s bes t represent s th e la w o f demand? a. Whe n buyers ’ taste s fo ra goo d increase , the y purchas e mor e o f th e good. b. Whe n incom e level s increase , buyer s purchas e mor e o f mos t goods. c. Whe n th e pric e o fa goo d decreases , buyer s purchas e mor e o f th e good. d. Whe n buyers ’ demand s fo ra goo d increase , th e pric e o f th e goo d increases. Tabl e 4-9 A n Increas e i n Supply A Decreas e i n Supply A n Increas e i n Demand A B ADecreaseinDemand C D 2. Refe r t o Tabl e 4-9 . Whic h combinatio n woul d produc e a n increas e i n equilibriu m quantit y an d a n indeterminate chang e i n equilibriu m price? a. A b. B c. C d. D 3. Refe r t o Tabl e 4-9 . Whic h combinatio n woul d produc e a n increas e i n equilibriu m pric e an d a n indeterminate chang e i n equilibriu m quantity? a. A b. B c. C d. D 4. Refe r t o Tabl e 4-9 . Whic h combinatio n woul d produc ea decreas e i n equilibriu m pric e an d a n indeterminate chang e i n equilibriu m quantity? a. A b. B c. C d. D 5. Refe r t o Tabl e 4-9 . Whic h combinatio n woul d produc ea decreas e i n equilibriu m quantit y an d a n indeterminate chang e i n equilibriu m price? a. A b. B c. C d. D Tabl e 4-10 Th e followin g tabl e show s th e numbe r o f case s o f wate r eac h selle r i s willin g t o sel l a t th e price s listed. Pric e pe r case AlpineSprings Broo k Mountain Cascad e Waters DewGood $0.00 0 cases 0 cases 0 cases 0 cases $3.00 100cases 40cases 60cases 100cases $6.00 200cases 80cases 120cases 200cases $9.00 300cases 120cases 180cases 300cases 6. Refe r t o Tabl e 4-10 . I f Alpin e Spring s an d De w Goo d ar e th e onl y tw o supplier s i n thi s market , b y ho w much doe s th e marke t quantit y supplie d chang e wit h eac h $ 3 increas e i n price? a. -200cases b. -100cases c. 100cases d. 200cases 7. Refe r t o Tabl e 4-10 . I f th e fou r supplier s liste d ar e th e onl y supplier s i n thi s marke t an d th e marke t demand schedul e is: Price Quantit y Demanded $0.00 1200 $3.00 900 $6.00 600 $9.00 300 th e equilibriu m pric e an d quantit y are a. $0.0 0 an d 120 0 cases b. $3.0 0 an d 30 0 cases c. $6.0 0 an d 60 0 cases d. $9.0 0 an d 60 0 cases 8. Refe r t o Tabl e 4-10 . I f th e fou r supplier s liste d ar e th e onl y supplier s i n thi s marke t an d th e marke t quantity demande d i s 50 0 case s whe n th e pric e i s $5.00 , whic h o f th e followin g statement s i s correct? a. Th e marke t i s i n equilibriu m a ta pric e o f $5.00. b. Ther e i sa surplu s o f 10 0 case s a ta pric e o f $5.00. c. Ther e i sa shortag e o f 10 0 case s a ta pric e o f $5.00. d. Ther e i sa shortag e o f 5 0 case s a ta pric e o f $5.00. Tabl e 4-11 Price Quantity Demanded Quantity Supplied $10 10 60 $8 20 45 $6 30 30 $4 40 15 $2 50 0 9. Refe r t o Tabl e 4-1 1 . Th e equilibriu .

1. EC202 Fall 2016
Homework 1
(due Oct 12)
Name_______________________
1.
Whic
h
o
f
thes
e
statement
s
bes
t
represent
s
th
e
la
w
o
f
demand?
a.
Whe
n

2. buyers
’
taste
s
fo
ra
goo
d
increase
,
the
y
purchas
e
mor
e
o
f
th
e
good.
b.
Whe
n
incom
e
level
s
increase
,
buyer
s
purchas
e
mor

3. e
o
f
mos
t
goods.
c.
Whe
n
th
e
pric
e
o
fa
goo
d
decreases
,
buyer
s
purchas
e
mor
e
o
f
th
e
good.
d.
Whe
n
buyers

4. ’
demand
s
fo
ra
goo
d
increase
,
th
e
pric
e
o
f
th
e
goo
d
increases.
Tabl
e
4-9
A
n
Increas
e
i
n
Supply
A
Decreas

5. e
i
n
Supply
A
n
Increas
e
i
n
Demand
A
B
ADecreaseinDemand
C
D
2.
Refe
r
t
o
Tabl
e
4-9
.
Whic
h
combinatio
n
woul
d
produc
e
a

6. n
increas
e
i
n
equilibriu
m
quantit
y
an
d
a
n
indeterminate
chang
e
i
n
equilibriu
m
price?
a.
A
b.
B
c.
C
d.
D
3.

7. Refe
r
t
o
Tabl
e
4-9
.
Whic
h
combinatio
n
woul
d
produc
e
a
n
increas
e
i
n
equilibriu
m
pric
e
an
d
a
n
indeterminate
chang
e
i
n
equilibriu

8. m
quantity?
a.
A
b.
B
c.
C
d.
D
4.
Refe
r
t
o
Tabl
e
4-9
.
Whic
h
combinatio
n
woul
d
produc
ea
decreas
e
i

9. n
equilibriu
m
pric
e
an
d
a
n
indeterminate
chang
e
i
n
equilibriu
m
quantity?
a.
A
b.
B
c.
C
d.
D
5.
Refe
r
t
o
Tabl

10. e
4-9
.
Whic
h
combinatio
n
woul
d
produc
ea
decreas
e
i
n
equilibriu
m
quantit
y
an
d
a
n
indeterminate
chang
e
i
n
equilibriu
m
price?
a.
A
b.

11. B
c.
C
d.
D
Tabl
e
4-10
Th
e
followin
g
tabl
e
show
s
th
e
numbe
r
o
f
case
s
o
f
wate
r
eac
h
selle

12. r
i
s
willin
g
t
o
sel
l
a
t
th
e
price
s
listed.
Pric
e
pe
r
case
AlpineSprings
Broo
k
Mountain
Cascad
e
Waters
DewGood
$0.00
0
cases
0
cases

13. 0
cases
0
cases
$3.00
100cases
40cases
60cases
100cases
$6.00
200cases
80cases
120cases
200cases
$9.00
300cases
120cases
180cases
300cases
6.
Refe
r
t
o
Tabl
e
4-10
.
I
f
Alpin
e
Spring
s

14. an
d
De
w
Goo
d
ar
e
th
e
onl
y
tw
o
supplier
s
i
n
thi
s
market
,
b
y
ho
w
much
doe
s
th
e
marke
t
quantit
y
supplie

15. d
chang
e
wit
h
eac
h
$
3
increas
e
i
n
price?
a.
-200cases
b.
-100cases
c.
100cases
d.
200cases
7.
Refe
r
t
o
Tabl
e
4-10

16. .
I
f
th
e
fou
r
supplier
s
liste
d
ar
e
th
e
onl
y
supplier
s
i
n
thi
s
marke
t
an
d
th
e
marke
t
demand
schedul
e
is:
Price

17. Quantit
y
Demanded
$0.00
1200
$3.00
900
$6.00
600
$9.00
300
th
e
equilibriu
m
pric
e
an
d
quantit
y
are
a.
$0.0
0
an
d
120
0
cases
b.
$3.0
0
an

18. d
30
0
cases
c.
$6.0
0
an
d
60
0
cases
d.
$9.0
0
an
d
60
0
cases
8.
Refe
r
t
o
Tabl
e
4-10
.
I
f

19. th
e
fou
r
supplier
s
liste
d
ar
e
th
e
onl
y
supplier
s
i
n
thi
s
marke
t
an
d
th
e
marke
t
quantity
demande
d
i
s
50
0
case

20. s
whe
n
th
e
pric
e
i
s
$5.00
,
whic
h
o
f
th
e
followin
g
statement
s
i
s
correct?
a.
Th
e
marke
t
i
s
i
n
equilibriu
m

21. a
ta
pric
e
o
f
$5.00.
b.
Ther
e
i
sa
surplu
s
o
f
10
0
case
s
a
ta
pric
e
o
f
$5.00.
c.
Ther
e
i
sa
shortag
e

22. o
f
10
0
case
s
a
ta
pric
e
o
f
$5.00.
d.
Ther
e
i
sa
shortag
e
o
f
5
0
case
s
a
ta
pric
e
o
f
$5.00.

23. Tabl
e
4-11
Price
Quantity
Demanded
Quantity
Supplied
$10
10
60
$8
20
45
$6
30
30
$4
40
15
$2
50
0
9.
Refe
r
t
o
Tabl
e
4-1

24. 1
.
Th
e
equilibriu
m
pric
e
an
d
quantity
,
respectively
,
are
a.
$
2
an
d
5
0
units.
b.
$
6
an
d
3
0
units.
c.
$

25. 6
an
d
6
0
units.
d.
$1
2
an
d
3
0
units.
10.
Refe
r
t
o
Tabl
e
4-1
1
.
I
f
th
e
pric
e
wer
e
$8

26. ,a
a.
shortag
e
o
f
2
0
unit
s
woul
d
exist
,
an
d
pric
e
woul
d
ten
d
t
o
rise.
b.
surplu
s
o
f
2
5
unit
s

27. woul
d
exist
,
an
d
pric
e
woul
d
ten
d
t
o
fall.
c.
shortag
e
o
f
2
5
unit
s
woul
d
exist
,
an
d
pric
e
woul
d
ten

28. d
t
o
rise.
d.
surplu
s
o
f
4
5
unit
s
woul
d
exist
,
an
d
pric
e
woul
d
ten
d
t
o
fall.
11.
Refe
r
t
o

29. Tabl
e
4-1
1
.
I
f
th
e
pric
e
wer
e
$4
,a
a.
surplu
s
o
f
1
5
unit
s
woul
d
exist
,
an
d
pric
e
woul
d
ten

30. d
t
o
fall.
b.
shortag
e
o
f
2
5
unit
s
woul
d
exist
,
an
d
pric
e
woul
d
ten
d
t
o
rise.
c.
surplu
s
o
f
2

31. 5
unit
s
woul
d
exist
,
an
d
pric
e
woul
d
ten
d
t
o
fall.
d.
shortag
e
o
f
4
0
unit
s
woul
d
exist
,
an
d
pric
e

32. woul
d
ten
d
t
o
rise.
Tabl
e
4-12
A
countr
y
clu
b
usuall
y
onl
y
allow
s
member
s
t
o
purchas
e
ticket
s
fo
r
it
s
celebrit

33. y
gol
f
tournament
,
bu
t
th
e
clu
b
is
considerin
g
allowin
g
non-member
s
t
o
purchas
e
ticket
s
thi
s
year
.
Th
e
deman
d
an
d
suppl
y

34. schedule
s
ar
e
a
s
follows:
Price
Quantit
y
Demanded
b
y
Members
Quantit
y
Demanded
b
y
Non-members
Quantit
y
Supplied
$10
1000
500
600
$15
800
400
600
$20
600

35. 300
600
$25
400
200
600
$30
200
100
600
12.
Refe
r
t
o
Tabl
e
4-12
.
I
f
onl
y
member
s
ar
e
allowe
d
t
o
purchas
e
ticket

36. s
t
o
thi
s
year'
s
celebrit
y
gol
f
tournament,
the
n
wha
t
wil
l
b
e
th
e
equilibriu
m
price?
a.
$10
b.
$15
c.
$20
d.

37. $25
13.
Refe
r
t
o
Tabl
e
4-12
.
I
f
bot
h
member
s
an
d
non-member
s
ar
e
allowe
d
t
o
purchas
e
ticket
s
t
o
thi
s

38. year'
s
celebrity
gol
f
tournament
,
the
n
wha
t
wil
l
b
e
th
e
equilibriu
m
price?
a.
$10
b.
$15
c.
$20
d.
$25
14.
Refe
r

39. t
o
Tabl
e
4-12
.
I
f
bot
h
member
s
an
d
non-member
s
ar
e
allowe
d
t
o
purchas
e
ticket
s
t
o
thi
s
year'
s
celebrity
gol
f
tournamen

40. t
an
d
th
e
countr
y
clu
b
set
s
th
e
ticke
t
pric
e
a
t
$30
,
the
n
ther
e
wil
l
be
a.
a
shortag
e
o
f
30

41. 0
tickets.
b.
a
surplu
s
o
f
30
0
tickets.
c.
60
0
ticket
s
sold.
d.
60
0
ticket
s
unsold.
15.
Refe
r
t
o
Tabl
e
4-12

42. .
I
f
bot
h
member
s
an
d
non-member
s
ar
e
allowe
d
t
o
purchas
e
ticket
s
t
o
thi
s
year'
s
celebrity
gol
f
tournamen
t
an
d
th
e

43. countr
y
clu
b
set
s
th
e
ticke
t
pric
e
a
t
$20
,
the
n
ther
e
wil
l
be
a.
a
shortag
e
o
f
30
0
tickets.
b.
a

44. surplu
s
o
f
30
0
tickets.
c.
30
0
ticket
s
sold.
d.
60
0
ticket
s
unsold.
16.
Consume
r
surplu
s
is
a.
a
concep
t
tha
t

45. help
s
u
s
mak
e
normativ
e
statement
s
abou
t
th
e
desirabilit
y
o
f
marke
t
outcomes.
b.
represente
d
o
na
grap
h
b
y
th
e
are
a
belo

46. w
th
e
deman
d
curv
e
an
d
abov
e
th
e
price.
c.
a
goo
d
measur
e
o
f
economi
c
welfar
e
i
f
buyers
'
preference
s
ar
e
th

47. e
primar
y
concern.
d.
Al
l
o
f
th
e
abov
e
ar
e
correct.
17.
I
na
market
,
th
e
margina
l
buye
r
i
s
th
e
buyer
a.

48. whos
e
willingnes
s
t
o
pa
y
i
s
highe
r
tha
n
tha
t
o
f
al
l
othe
r
buyer
s
an
d
potentia
l
buyers.
b.
whos
e
willingnes
s

49. t
o
pa
y
i
s
lowe
r
tha
n
tha
t
o
f
al
l
othe
r
buyer
s
an
d
potentia
l
buyers.
c.
wh
o
i
s
willin
g
t
o
bu

50. y
exactl
y
on
e
uni
t
o
f
th
e
good.
d.
wh
o
woul
d
b
e
th
e
firs
t
t
o
leav
e
th
e
marke
t
i
f
th
e

51. pric
e
wer
e
an
y
higher.
Tabl
e
7-1
Buyer
WillingnessToPay
Calvin
$150.00
Sam
$135.00
Andrew
$120.00
Lori
$100.00
18.
Refe
r
t
o
Tabl
e
7-
1
.
I
f
th

52. e
pric
e
o
f
th
e
produc
t
i
s
$110
,
the
n
wh
o
woul
d
b
e
willin
g
t
o
purchas
e
th
e
product?
a.
Calvin
b.
Calvi

53. n
an
d
Sam
c.
Calvin
,
Sam
,
an
d
Andrew
d.
Calvin
,
Sam
,
Andrew
,
an
d
Lori
19.
Refe
r
t
o
Tabl
e
7-
1
.

54. I
f
th
e
pric
e
o
f
th
e
produc
t
i
s
$130
,
the
n
wh
o
woul
d
b
e
willin
g
t
o
purchas
e
th
e
product?
a.
Calvin

55. b.
Calvi
n
an
d
Sam
c.
Calvin
,
Sam
,
an
d
Andrew
d.
Calvin
,
Sam
,
Andrew
,
an
d
Lori
20.
Refe
r
t
o
Tabl
e

56. 7-
1
.
I
f
th
e
pric
e
o
f
th
e
produc
t
i
s
$122
,
the
n
th
e
tota
l
consume
r
surplu
s
is
a.
$28.
b.
$41.
c.
$43.

57. d.
$405.
21.
Refe
r
t
o
Tabl
e
7-
1
.
I
f
pric
e
o
f
th
e
produc
t
i
s
$135
,
the
n
th
e
tota
l

58. consume
r
surplu
s
is
a
.
$-50.
b.
$-35.
c
.
$15.
d.
$150.
22.
Refe
r
t
o
Tabl
e
7-
1
.
I
f
th
e
marke

59. t
pric
e
i
s
$105,
a.
Calvin’
s
consume
r
surplu
s
i
s
$4
5
an
d
tota
l
consume
r
surplu
s
i
s
$85.
b.
Sam’
s
consume
r
surplu

60. s
i
s
$3
0
an
d
tota
l
consume
r
surplu
s
i
s
$90.
c.
Andrew’
s
consume
r
surplu
s
i
s
$1
5
an
d
tota
l
consume
r
surplu
s

61. i
s
$67.50.
d.
Lori’
s
consume
r
surplu
s
i
s
-$
2
an
d
tota
l
consume
r
surplu
s
i
s
$100.
Tabl
e
7-2
Thi
s
tabl
e
refer

62. s
t
o
fiv
e
possibl
e
buyers
'
willingnes
s
t
o
pa
y
fo
ra
cas
e
o
f
Vanill
a
Coke.
Buyer
WillingnessToPay
David
$8.50
Laura
$7.00
Megan
$5.50
Mallory
$4.00

63. Audrey
$3.50
23.
Refe
r
t
o
Tabl
e
7-
2
.
I
f
th
e
pric
e
o
f
Vanill
a
Cok
e
i
s
$6.90
,
wh
o
wil
l
purchas
e
th

64. e
good?
a.
al
l
fiv
e
individuals
b.
Megan
,
Mallor
y
an
d
Audrey
c.
David
,
Laur
a
an
d
Megan
d.
Davi
d
an
d
Laura

65. 24.
Refe
r
t
o
Tabl
e
7-
2
.
Whic
h
o
f
th
e
followin
g
i
s
no
t
true?
a.
A
ta
pric
e
o
f
$9.00
,
n
o

66. buye
r
i
s
willin
g
t
o
purchas
e
Vanill
a
Coke.
b.
A
ta
pric
e
o
f
$5.50
,
Mega
n
i
s
indifferen
t
betwee
n
buyin
ga
cas
e
o

67. f
Vanill
a
Cok
e
an
d
no
t
buyin
g
one.
c.
A
ta
pric
e
o
f
$4.00
,
tota
l
consume
r
surplu
s
i
n
th
e
marke
t
wil
l

68. b
e
$9.00.
d.
Al
l
o
f
th
e
abov
e
ar
e
correct.
25.
Refe
r
t
o
Tabl
e
7-
2
.
I
f
th
e
marke
t

69. pric
e
i
s
$5.50
,
th
e
consume
r
surplu
s
i
n
th
e
marke
t
wil
l
be
a
.
$3.00.
b.
$4.50.
c
.
$15.50.
d.
$21.00.
26.
Refe

70. r
t
o
Tabl
e
7-
2
.
I
f
th
e
marke
t
pric
e
i
s
$3.80,
a.
David’
s
consume
r
surplu
s
i
s
$4.7
0
an
d
tota
l
consume

71. r
surplu
s
fo
r
th
e
fiv
e
individual
s
i
s
$9.50.
b.
Megan’
s
consume
r
surplu
s
i
s
$1.7
0
an
d
tota
l
consume
r
surplu
s
fo
r

72. th
e
fiv
e
individual
s
i
s
$9.80.
c.
David
,
Laura
,
an
d
Mega
n
wil
l
b
e
th
e
onl
y
buyer
s
o
f
Vanill
a
Coke.
d.

73. th
e
deman
d
curv
e
fo
r
Vanill
a
Coke
,
takin
g
th
e
fiv
e
individual
s
int
o
account
,
i
s
horizontal.
Figur
e
7-6
27.
Refe
r

74. t
o
Figur
e
7-6
.
A
t
th
e
equilibriu
m
price
,
consume
r
surplu
s
is
a
.
$1,600.
b.
$800.
c
.
$1,400.
d.
$700.
28.

75. Refe
r
t
o
Figur
e
7-6
.
I
f
th
e
governmen
t
impose
sa
pric
e
floo
r
o
f
$11
0
i
n
thi
s
market
,
the
n
consume
r
surplu
s

76. will
decreaseby
a
.
$200.
b.
$400.
c
.
$600.
d.
$800.
Figur
e
7-11
29.
Refe
r
t
o
Figur
e
7-11
.
I
f
th
e
suppl
y
curv
e
i

77. s
S
,
th
e
deman
d
curv
e
i
s
D
,
an
d
th
e
equilibriu
m
pric
e
i
s
$100
,
wha
t
is
th
e
produce
r
surplus?
a.
$625

78. b.
$1,250
c.
$2,500
d.
$5,000
30. Refe
r
t
o
Figur
e
7-11
.
I
f
th
e
suppl
y
curv
e
i
s
S’
,
th
e
deman
d
curv
e

79. i
s
D
,
an
d
th
e
equilibriu
m
pric
e
i
s
$150
,
wha
t
is
th
e
produce
r
surplus?
a
.
$625
b.
$1,250
c
.
$2,500
d.
$5,000

80. 31.
Refe
r
t
o
Figur
e
7-11
.
I
f
th
e
deman
d
curv
e
i
sD
an
d
th
e
suppl
y
curv
e
shift
s
fro
m
S
’
t
o

81. S
,
wha
t
i
s
th
e
chang
e
in
produce
r
surplus?
a.
Produce
r
surplu
s
increase
s
b
y
$625.
b.
Produce
r
surplu
s
increase
s
b
y

82. $1,875.
c.
Produce
r
surplu
s
decrease
s
b
y
$625.
d.
Produce
r
surplu
s
decrease
s
b
y
$1,875.
32.
Refe
r
t
o
Figur
e
7-11
.
I
f

83. th
e
suppl
y
curv
e
i
sS
an
d
th
e
deman
d
curv
e
shift
s
fro
mD
t
o
D’
,
wha
t
i
s
th
e
chang
e
in
produce
r
surplus?

84. a.
Produce
r
surplu
s
increase
s
b
y
$3,125.
b.
Produce
r
surplu
s
increase
s
b
y
$5,625.
c.
Produce
r
surplu
s
decrease
s
b
y
$3,125.
d.
Produce

85. r
surplu
s
decrease
s
b
y
$5,625.
33.
Refe
r
t
o
Figur
e
7-11
.
I
f
th
e
suppl
y
curv
e
i
sS
an
d
th
e
deman
d
curv
e

86. shift
s
fro
mD
t
o
D’
,
wha
t
i
s
th
e
increas
e
in
produce
r
surplu
s
t
o
existin
g
producers?
a
.
$625
b.
$2,500
c
.
$3,125
d.
$5,625

87. 34. Refe
r
t
o
Figur
e
7-11
.
I
f
th
e
suppl
y
curv
e
i
sS
an
d
th
e
deman
d
curv
e
shift
s
fro
mD
t
o
D’
,
wha

88. t
i
s
th
e
increas
e
in produce
r
surplu
s
du
e
t
o
ne
w
producer
s
a
.
$625
b.
$2,500
c
.
$3,125
d.
$5,625
35.

89. Suppos
e
tha
t
5
0
ic
e
crea
m
cone
s
ar
e
demande
d
a
ta
particula
r
price
.
I
f
th
e
pric
e
o
f
ic
e
crea
m
cone
s

90. rise
s
fro
m
that
pric
e
b
y4
percent
,
th
e
numbe
r
o
f
ic
e
crea
m
cone
s
demande
d
fall
s
t
o
46
.
Usin
g
th
e
midpoin

91. t
approac
h
t
o
calculate
th
e
pric
e
elasticit
y
o
f
demand
,
i
t
follow
s
tha
t
the
a.
deman
d
fo
r
ic
e
crea
m
cone
s
i

92. n
thi
s
pric
e
rang
e
i
s
elastic.
b.
deman
d
fo
r
ic
e
crea
m
cone
s
i
n
thi
s
pric
e
rang
e
i
s
inelastic.
c.
deman

93. d
fo
r
ic
e
crea
m
cone
s
i
n
thi
s
pric
e
rang
e
i
s
uni
t
elastic.
d.
pric
e
elasticit
y
o
f
deman
d
fo
r
ic
e

94. crea
m
cone
s
i
n
thi
s
pric
e
rang
e
i
s
0.
36.
Whe
n
th
e
pric
e
o
f
cha
i
te
a
latté
s
i
s
$5
,
Maxin

95. e
buy
s
2
0
pe
r
month
.
Whe
n
th
e
pric
e
i
s
$4
,
sh
e
buy
s
3
0
pe
r
month.
Maxine'
s
deman
d
fo
r
cha
i

96. te
a
latté
s
is
a.
elastic
,
an
d
he
r
deman
d
curv
e
woul
d
b
e
relativel
y
flat.
b.
elastic
,
an
d
he
r
deman
d
curv
e

97. woul
d
b
e
relativel
y
steep.
c.
inelastic
,
an
d
he
r
deman
d
curv
e
woul
d
b
e
relativel
y
flat.
d.
inelastic
,
an
d
he
r
deman
d

98. curv
e
woul
d
b
e
relativel
y
steep.
Tabl
e
5-1
Good
PriceElasticityofDemand
A
1.9
B
0.8
37.
Refe
r
t
o
Tabl
e
5-1
.
Whic
h
o
f
th
e

99. followin
g
i
s
consisten
t
wit
h
th
e
elasticitie
s
give
n
i
n
Tabl
e
5-1?
a.
A
i
sa
luxur
y
an
dB
i
sa
necessity.
b.
A
i
sa

100. goo
d
afte
r
a
n
increas
e
i
n
incom
e
an
dB
i
s
tha
t
sam
e
goo
d
afte
ra
decreas
e
i
n
income.
c.
A
ha
s
fewe
r

101. substitute
s
tha
n
B.
d.
A
i
sa
goo
d
immediatel
y
afte
ra
pric
e
increas
e
an
dB
i
s
tha
t
sam
e
goo
d3
year
s
afte
r
th
e

102. pric
e
increase.
38.
Refe
r
t
o
Tabl
e
5-1
.
Whic
h
o
f
th
e
followin
g
i
s
consisten
t
wit
h
th
e
elasticitie
s
give
n
i
n
Tabl

103. e
5-1?
a.
A
i
s
laundr
y
detergen
t
an
dB
i
s
Tide.
b.
A
i
s
Die
t
Peps
i
an
dB
i
s
soda.
c.
A
i
s
foo

104. d
an
dB
i
sa
yacht.
d.
A
i
s
toile
t
pape
r
an
dB
i
s
candles.
39.
Refe
r
t
o
Tabl
e
5-1
.
Whic
h
o
f
th
e

105. followin
g
i
s
consisten
t
wit
h
th
e
elasticitie
s
give
n
i
n
Tabl
e
5-1?
a.
A
i
s
pen
s
an
dB
i
s
pencils.
b.
A
i
sa

106. Snicker
s
ba
r
an
dB
i
sa
Milk
y
Wa
y
bar.
c.
A
i
s
a
n
airlin
e
ticke
t
fro
m
Chicag
o
t
o
Ne
w
Yor
k
demande
d

107. b
ya
vacatione
r
an
dB
i
s
a
n
airlin
e
ticke
t
from
Chicag
o
t
o
Ne
w
Yor
k
demande
d
b
ya
busines
s
traveler.
d.
A
i
sa
bottl

108. e
o
f
wate
r
demande
d
b
ya
touris
t
i
na
deser
t
an
dB
i
sa
bottl
e
o
f
wate
r
demande
d
b
ya
touris
t
i
na
rai
n
forest.

109. 40.
Suppos
e
ther
e
i
sa6
percen
t
increas
e
i
n
th
e
pric
e
o
f
goo
dX
an
da
resultin
g6
percen
t
decreas
e
i
n
th
e
quantit
y

110. o
fX
demanded
.
Pric
e
elasticit
y
o
f
deman
d
fo
rX
is
a.
0.
b.
1.
c.
6.
d.
36.