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Given a linear supply function of the form QX S = 3,000 + 3PX – 2Pr – Pw, find the inverse linear supply function assuming Pr = $1,000 and Pw = $100.
Correct answer(s):
- PX = -300 + 0.3333QX.
Given a linear supply function of the form QX S = -10 + 5PX, find the inverse linear supply function.
Correct answer(s):
- PX = 2 + 0.2QX.
Given a linear demand function of the form QX d = 500 – 2PX – 3PY + 0.01M, find the inverse linear demand function assuming M = 20,000 and PY = 10.
Correct answer(s):
- PX = 335 - 0.5QX.
Given a linear demand function of the form QX d = 100 – 0.5PX, find the inverse linear demand function.
Correct answer(s):
- PX = 200 - 2QX.
Suppose there is a simultaneous increase in demand and decrease in supply, what effect will this have on the equilibrium price?
Correct answer(s):
- It will rise.
An excise tax of $1.00 per gallon of gasoline placed on the suppliers of gasoline, would shift the supply curve
Correct answer(s):
- up by $1.00.
All else held constant, as additional firms enter an industry
Correct answer(s):
- more output is available at each given price.
Good X is an inferior good if a decrease in income leads to
Correct answer(s):
- an increase in the demand for good X.
Demand shifters do not include the
Correct answer(s):
- price of the good.
For a wood furniture manufacturer, an increase in the cost of lumber will cause the supply curve to:
Correct answer(s):
- shift to the left.
Suppose the demand for good X is…..
Correct answer(s):
- 180
Graphically, an increase in the number of vegetarians will cause the demand curve for Tofu (a meat substitute) to
Correct answer(s):
- shift rightward.
Which of the following pairs of goods are probably complements?
Correct answer(s):
- Ketchup and French fries.
Which of the following is probably not a normal good?
Correct answer(s):
- Intercity passenger bus travel.
The law of demand indicates that as the price of a good increases, the quantity that
Correct answer(s):
- buyers are able to purchase decreases.
In a competitive market, the market demand is Qd = 70 – 3P and the market supply is Qs = 6P. A price ceiling of $4 will result in a
Correct answer(s):
- shortage of 34 units.
Jane pays the market price of $69 for….
Correct answer(s):
- consumer surplus.
When government imposes a price floor above the market price, the result will be that
Correct answer(s):
- surpluses occur.
The word ‘imbibe’ means –
Correct answer(s):
- to drink
The word ‘homogeneous’ means –
Correct answer(s):
- of the same kind