1) If price elasticity of demand for avocado at price P* is equal to -2/3, how much is P*? a) b) C) d) e) $2. $2. $2. $2. $2. 00 20 40 60 80 2) What is quantity demanded at price P* at which price elasticity of demand for avocado equals -2/3? a) b) C) d) C) 82. 83. 84. 85. 86. 2 2 tons tons tons tODS tons 3) If price elasticity of supply for avocado at price P* is equal to 2.5, how much is P*? a) b) C) d) C) $2 $3 $4 $5 $6 I) What is quantity supplied at price P* at which price elasticity of supply for avocado equals 2.5? a) 6 tons b) 12 tons c) 18 tons d) 24 tons e) 30 tons 5) What is market clearing equilibrium.price and quantity in Brooklyn avocado market? a) $3; 20 tons b) $4: 22 tons C) $5: 24 tons d) $6; 30 tons e) $7; 30 tons 6) What is the price elasticity of demand if the avocado sells for $2 per kg? a) O.2 b) -O.5 c) -0.8 d) -1.2 e) -2 7) If the selling price of avocado is $3.00 per kg, the demand is a) inelastic b) elastic c) unit elastic d) perfectly elastic e) perfectly inelastic 8) What is the price elasticity of demand if the avocado sells for $5.75 per kg? a) -O.23 b) 2.3 c) -12.3 d) 22.3 e) 23 9) If the selling price of avocado is $5.75 per kg, the demand is a) inelastic b) elastic c) unit elastic d) perfectly elastic e) perfectly inelastic 10) If the selling price of avocado is $5.9999 per kg, the demand is a) inelastic b) elastic c) unit elastic d) perfectly elastic e) perfectly inelastic 11) What is the price elasticity of supply if the avocado sells for $3.25 per kg? a) 0.3 b) 13 c) 1.3 d) 2.3 e) 3 12) If the selling price of avocado is $6.00 per kg, the supply is a) inelastic b) elastic c) unit elastic d) perfectly elastic e) perfectly inelastic 13) What is the price elasticity of supply if the avocado sells for $9 per kg? a) 0.5 b) 15 c) 1.5 d) 2.5 e) 3 14) If the selling price of avocado is $5.75 per kg, the supply is a) inelastic b) elastic c) unit elastic d) perfectly elastic e) perfectly inelastic 15) If the selling price of avocado is $100 per kg, the supply is a) inelastic b) elastic c) unit elastic d) perfectly elastic e) perfectly inelastic 16) What is the total amount of shortage/surplus if the price of avocado .00 per kg in Brooklyn avocado market? is $4 a) 36 b) 39 c) 42 d) 36 e) 18 tons tons tons tons tons of of of of of surplus surplus surplus shortage shortage 17) What is the total amount of shortage/surplus if the price of avocado is $6.00 per kg in Brooklyn avocado market? a) b) C) d) e) 36 39 42 36 18 tons tons tons tons tons of of of Of of surplus surplus surplus shortage shortage 18} While the avocado market is in equilibrium if avocado sellers decide to raise their prices by 2% above the market equilibrium price, what will happen to the percent change in quantity demanded? a) b) C) d) e) It It It It It will will will will will 19} decrease by 5%. decrease by 10% decrease 15%. decrease by 20% decrease by 25% Which of the following would not shift the supply curve for avocado to the right? a.An increase in the number avocado farms b. Good weather for growing avocado c.A reduction in wages for avocado pickers d.An increase in the expected price of avocado in the future e.A.technology for growing avocado with less water 20) Which of the following would not shift the supply curve for avocado to the left? a)Bad weather for growing avocado b)An increase in wages for avocado pickers c)A shift in tastes from avocado to tomatoes d)An increase in the cost of the inspection and certification paid by avocado producers e)An increase in the expected price of coffee in the future 21) Suppose that the supply of avocado increases due to an improvement in the technology for growing avocado with less watering costs. Which of the following describes the mechanism of price and quantity adjustment assuming that there is no change in the demand curve? a)There is a downward pressure on prices and an increase in the equilibrium quantity. b) There is an upward pressure on prices and an increase in the equilibrium quantity. c)There is no change in equilibrium price and quantity. d)There is a downward pressure on prices and a decrease in the equilibrium quantity. e)None of the above. 22) In answering the following question, it may be helpful to draw a supply and demand diagram. What is the effect on equilibrium price and quantity of an decrease in both supply and demand? a)There is an increase in equilibrium price and an increase in equilibrium quantity. b) There is no change in equilibrium price but a decrease in equilibrium quantity. c)There is a decrease in equilibrium price and an increase in equilibrium quantity. d)There is no change in equilibrium price or quantity. e) There is an ambiguous effect on equilibrium price and a decrease in equilibrium quantity. 23) Suppose we know that the price elasticity of demand for organic apples is -1.2. If a grocer increases the price of organic apples by 15%, what would we expect to happen to the quantity of organic apples purchased? a)Decrease by 1.2% b)Decrease by 12% c)Decrease by 1.8% d)Decrease by 18% e) Decrease by 2.4 % 24) Suppose we know that the price elasticity of demand for sandals is -1.5. A shoe stores normally sells 100 pairs of sandals each month. If it decides to raise the price of its sandals by 30%, how many sandals would it then sell per month? a) 115 b) 85 c)70 d) 60 e) 55 25) If a increase in the price of apples from $1 to $2 per pair leads to an decrease in the quantity of apples demanded from 150 million to 100 million kg, then applying the midpoint formula, the price elasticity of demand equals: a)4/10 b)-6/10