Question 1

Consider a market with a demand curve given by q = 120 -P and a supply curve of q = 2P.Solving for q and P yields

Accepted Answer

A) q = 10, P = 30 
B) q = 20, P = 40 
C) q = 80, P = 40 
D) q = 50, P = 25 
E) q = 30, P = 15 
A) q = 10, P = 30 
B) q = 20, P = 40 
C) q = 80, P = 40 
D) q = 50, P = 25 
E) q = 30, P = 15 C

Question 2

Consider a demand curve represented by P = 10 - 2q, where P is price and q is the quantity demanded.What is the slope of the line?

Accepted Answer

A) 10 
B) 2 
C) -2 
D) -1/2 
E) P 
A) 10 
B) 2 
C) -2 
D) -1/2 
E) P C

Question 3

What is the quantity q at which the profit function given by 240q - 4q2 is maximized?

Accepted Answer

A) 30 
B) 40 
C) 50 
D) 60 
E) 70 
A) 30 
B) 40 
C) 50 
D) 60 
E) 70 A

Question 4

What is the quantity q at which the profit function given by 200q - q2 is maximized?

Accepted Answer

A) 20 
B) 40 
C) 60 
D) 80 
E) 100 
A) 20 
B) 40 
C) 60 
D) 80 
E) 100

Question 5

Consider a demand curve represented by P = 100 - 2q, where P is price and q is the quantity demanded.What is the price when the quantity demanded is 20?

Accepted Answer

A) 100 
B) 80 
C) 60 
D) 40 
E) 20 
A) 100 
B) 80 
C) 60 
D) 40 
E) 20

Question 6

A cost function is given by C(q) = 100 + 3q + 5q2, where q is the quantity produced.What is the first derivative dC(q)/dq of the cost function with respect to q?

Accepted Answer

A) dC(q)/dq =3 
B) dC(q)/dq = 3 + 10q 
C) dC(q)/dq = 100 + 10q 
D) dC(q)/dq = 10q 
E) None of the above 
A) dC(q)/dq =3 
B) dC(q)/dq = 3 + 10q 
C) dC(q)/dq = 100 + 10q 
D) dC(q)/dq = 10q 
E) None of the above

Question 7

If there is a -20 per cent change in y given a 5 per cent change in x, what is the elasticity of y given the change in x?

Accepted Answer

A) 2 
B) -.025 
C) -1/2 
D) -4 
E) 3 
A) 2 
B) -.025 
C) -1/2 
D) -4 
E) 3

Question 8

Consider a market with a demand curve given by P = 150 - q and a supply curve of P = 2q.Solving for q and P yields

Accepted Answer

A) q = 60, P = 30 
B) q= 120, P = 60 
C) q = 90, P = 60 
D) q = 40, P = 80 
E) q = 50, P = 100 
A) q = 60, P = 30 
B) q= 120, P = 60 
C) q = 90, P = 60 
D) q = 40, P = 80 
E) q = 50, P = 100

Question 9

Consider a straight-line demand curve that cuts the P axis at P = 10 and cuts the q axis at q = 20.What is the equation for this demand curve?

Accepted Answer

A) P = 20 - q 
B) P = 10 - 2q 
C) P = 20 - 2q 
D) P = 10 - 1/2q 
E) None of the above. 
A) P = 20 - q 
B) P = 10 - 2q 
C) P = 20 - 2q 
D) P = 10 - 1/2q 
E) None of the above.

Question 10

If there is a 10 per cent change in y given a 5 per cent change in x, what is the elasticity of y given the change in x?

Accepted Answer

A) 10 
B) 2 
C) 1/2 
D) 5 
E) None of the above 
A) 10 
B) 2 
C) 1/2 
D) 5 
E) None of the above

Consider a market with a demand curve given by q = 120 -P and a supply curve of q = 2P.Solving for q and P yields

Consider a demand curve represented by P = 10 - 2q, where P is price and q is the quantity demanded.What is the slope of the line?

What is the quantity q at which the profit function given by 240q - 4q² is maximized?

What is the quantity q at which the profit function given by 200q - q² is maximized?

Consider a demand curve represented by P = 100 - 2q, where P is price and q is the quantity demanded.What is the price when the quantity demanded is 20?

A cost function is given by C(q) = 100 + 3q + 5q², where q is the quantity produced.What is the first derivative dC(q)/dq of the cost function with respect to q?

If there is a -20 per cent change in y given a 5 per cent change in x, what is the elasticity of y given the change in x?

Consider a market with a demand curve given by P = 150 - q and a supply curve of P = 2q.Solving for q and P yields

Consider a straight-line demand curve that cuts the P axis at P = 10 and cuts the q axis at q = 20.What is the equation for this demand curve?

If there is a 10 per cent change in y given a 5 per cent change in x, what is the elasticity of y given the change in x?

Key Economic Concepts

Key Strategic Tools

Trade and the Ppf

Bargaining

Demand

Production and Costs

Supply

Equilibrium and Welfare

Elasticity

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Price Regulation, Taxes and Subsidies

Externalities

Public Goods and Common Resources

The Theory of Second Best

International Trade

Filters

Exam 2: Key Mathematical Tools

Consider a market with a demand curve given by q = 120 -P and a supply curve of q = 2P.Solving for q and P yields

Consider a demand curve represented by P = 10 - 2q, where P is price and q is the quantity demanded.What is the slope of the line?

What is the quantity q at which the profit function given by 240q - 4q2 is maximized?

What is the quantity q at which the profit function given by 200q - q2 is maximized?

Consider a demand curve represented by P = 100 - 2q, where P is price and q is the quantity demanded.What is the price when the quantity demanded is 20?

A cost function is given by C(q) = 100 + 3q + 5q2, where q is the quantity produced.What is the first derivative dC(q)/dq of the cost function with respect to q?

If there is a -20 per cent change in y given a 5 per cent change in x, what is the elasticity of y given the change in x?

Consider a market with a demand curve given by P = 150 - q and a supply curve of P = 2q.Solving for q and P yields

Consider a straight-line demand curve that cuts the P axis at P = 10 and cuts the q axis at q = 20.What is the equation for this demand curve?

If there is a 10 per cent change in y given a 5 per cent change in x, what is the elasticity of y given the change in x?

Key Economic Concepts

Key Strategic Tools

Trade and the Ppf

Bargaining

Demand

Production and Costs

Supply

Equilibrium and Welfare

Elasticity

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Price Regulation, Taxes and Subsidies

Externalities

Public Goods and Common Resources

The Theory of Second Best

International Trade

Filters

What is the quantity q at which the profit function given by 240q - 4q² is maximized?

What is the quantity q at which the profit function given by 200q - q² is maximized?

A cost function is given by C(q) = 100 + 3q + 5q², where q is the quantity produced.What is the first derivative dC(q)/dq of the cost function with respect to q?