1. If supply decreases and demand also decreases, we can conclude that the new equilibrium:

2. On the diagram for question two, circle the letter that correctly completes the following statement: Let D₁ and S₁represent the original supply and demand curves. If there has been only an increase in demand, then the new equilibrium point will be _____?

3. One of the following equations represents a supply curve and the other a demand curve.You have to decide which is which.Circle the answer for question three that is the closest to being correct. The equations are:

Q = 150 - 10P Q = 100 + 5.6P

What quantity will suppliers willingly supply if the market price is forced to be $2 ?

4. Here is a function that is either a demand function or a supply function (but not both):

Q = 6 - 5P

A change occurs so that the following function now represents the situation:

Q = 2 - 5P

We can conclude that (circle the appropriate conclusion on the answer sheet).

5. Here is a demand function: Q = 10 - 5P. On the answer sheet circle your choice for its marginal revenue (MR) function.

6. Circle your choice for the quantity that will maximize total revenue for the function in 5 (above).

7. Suppose the price elasticity of demand for bread is 2.00. If the price of bread rises by 10%, the quantity demanded will decrease by:

8. Suppose that a 10% decrease in the price of good Y causes a 20% decrease in demand for good X. The coefficient of cross-price elasticity of demand is:

9. A price increase from $20 to $40 causes quantity demanded to decrease from 100 units to 50 units. The price elasticity of demand in this price range is:

10. The income elasticity of demand for a good is 0.5. If income increases by 5%, how much can demand be expected to increase?

11. Demand for X decreases from 100 to 50 when the price of Y decreases from $7 to $6.The cross-price elasticity of demand is: