1. (2.5 points) Suppose that computer programmers and marathoners have the following demand for sports drinks: Price per bottle Quantity Demanded Quantity Demanded for computer programmers for marathoners (in bottles) (in bottles) a. Using the midpoint method, calculate the price elasticity of demand as the price per bottle rises from $2.00 to $2.50 for i. computer programmers ii. marathoners b. Based on your calculations in part (a), for a price increase from $2.00 to $2.50 per bottle i. the demand curve for computer programmers is price elastic / inelastic (circle, or highlight, or bold one to indicate your response). ii. the demand curve for marathoners is price elastic / inelastic (circle, or highlight, or bold one to indicate your response). c. In your opinion, why might marathoners have a different price elasticity of demand for sports drinks than computer programmers? 2. (1 point) A price change causes the quantity demanded of a good to decrease by 10 percent. As a result, total revenue from sales of the good increases by 30 percent. Based on both of those changes, say whether the demand curve is elastic or inelastic (choose one). HINT: look at section 5.3 of our textbook. 3. (1 point) Suppose that Marvin's demand schedule for tortilla chips is as follows: Price per bag Quantity Demanded Quantity Demanded (income = $45,000) (income = $53,000) $1.99 20 bags 29 bags a. Using the midpoint method, calculate Marvin's income elasticity of demand as his income increases from $45,000 to $53,000 if the price for tortilla chips is $1.99 per bag. b. Based on your calculation in part a., does Marvin view tortilla chips as a normal good or an inferior good? 4. (2 points) Suppose that loggers and miners have the following demand for hardhats. Price per hardhat Quantity Demanded for Quantity Demanded for loggers miners (in hardhats) (in hardhats) a. Using the midpoint method, calculate the price elasticity of demand as the price per hardhat increases from $35.00 to $36.00 for loggers. b. Using the midpoint method, calculate the price elasticity of demand as the price per hardhat increases from $35.00 to $36.00 for miners. 5. (2 points) Consult section 5.2 in our textbook, then answer parts a. and b. below. a. Graphically, what does the supply curve look like when supply is perfectly inelastic? b. Graphically, what does the demand curve look like when demand is perfectly inelastic? 6. (1 point) Suppose a firm that produces electric vehicle batteries is facing higher costs. From that firm's perspective, why might an understanding of the elasticities for electric vehicle batteries be useful? 7. (0.5 points) The interest rate elasticity of borrowing deals with the demand side / supply side (choose one) of the financial market. CHAPTER 6 8. (0.5 points) Consider the calculation of per capita GDP. Now, think carefully; there is one and only one scenario that can cause per capita GDP to increase at the same time that real GDP is decreasing. What is that scenario? 9. (1 point) Country A has export sales of $50 billion, government purchases of $720 billion, business investment of $198 billion, imports of $80 billion, and consumption spending of $1,819 billion. What is the dollar value of GDP in Country A? 10. (1 point) Country B has export sales of $40 billion, government purchases of $400 billion, business investment of $105 billion, imports of $130 billion, and consumption spending of $1,100 billion. What is the dollar value of GDP in Country B? 11. (2 points) Which of the following are included in GDP, and which are not? (Note: for your responses to each, just choose "included" or "not included") a. The cost of going to the doctor for a routine checkup. b. The recent decline in life expectancy "largely driven by the pandemic" (SOURCE: https://www.cdc.govchs/pressroomchs_press_re|eases/2022/20220831 .htm Links to an external site.) c. Babysitting provided by a licensed babysitting service d. Babysitting provided by a responsible older sibling e. A new lawnmower sale f. A used lawnmower sale g. The plastic that goes into the dashboard that goes into a car bought by a consumer h. The greater variety of vegan options available in supermarkets 12. (2.5 points) Suppose the following table contains GDP data for Country X. of dollars) 100) 2010 3,100.4 100.0 Using data from the table how much of the nominal GDP growth in Country X from 1980 to 1990 was real GDP and how much was inflation? (Note: Self-check guestion #3 (Links to an external site.)for textbook Chapter 6 is a very similar problem.) 13. (1 point) Say Mexico has a GDP of $1,200,000,000,000 and a population of 132 million people. Using those figures, calculate the GDP per capita of Mexico. 14. (2 points) Explain briefly whether each of the following would cause GDP to overstate or understate the degree of change in the broad standard of living. a. The environment becomes cleaner b. Income inequality has increased in the United States relative to the 19605