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ECON 312 Week 2 Quiz

  1. (TCO 2) Economists use the term “demand” to refer to
  2. (TCO 2) Which of the following will not cause the demand for product K to change?
  3. (TCO 2) Which of the following is most likely to be an inferior good?
  4. (TCO 2) Which of the following would mostly likely increase the demand for gasoline?
  5. (TCO 2) Increasing marginal cost of production explains
  6. (TCO 2) The price elasticity of demand is generally
  7. (TCO 2) The price of product X is reduced from $100 to $90 and, as a result, the quantity demanded increases from 50 to 60 units. Therefore, demand for X in this price range
  8. TCO 2) A firm can sell as much as it wants at a constant price. Demand is thus
  9. (TCO 2) The demand for a necessity whose cost is a small portion of one’s total income is
  10. (TCO 2) What is the Law of Demand? Why does the demand curve slope downwards?
  11. (TCO 2) Suppose the price of widgets rises from $7 to $9 and consumption of widgets falls from 25 widgets a month to 15 widgets. Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand of widgets? Is it Elastic, Inelastic, or Unitary Elastic? Why? Use the Midpoint formula and please show your work.