1. If supply increases and demand also increases, we can conclude that the new equilibrium: 2. On the diagram for question two, circle the letter that correctly completes the following statement: Let Dj and Sj represent the original supply and demand curves. The original equilibrium point is 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 Approximately, what will the equilibrium quantity be? 4. Here is a function that is either a demand function or a supply function (but not both): Q =2-5P A change occurs so that the following function now represents the situation: Q =6-5P We can conclude that (circle the appropriate conclusion on the answer sheet). 5. Here is a demand function: Q =6-6P 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 0.20. If the price of bread falls by 10%, the quantity demanded will increase by: 8. Suppose that a 10% decrease in the price of good Y causes a 20% increase in demand for good X. The coefficient of cross-price elasticity of demand is: 9. When the price of candy bars increased from $0.45 to $0.55 the quantity demanded decreased from 21,000 per day to 19,000 per day. In this range, the price elasticity of demand is: 10. If the elasticity of supply for crude oil is 2.5, how much will the price have to increase to increase production 20%? 11. Demand for X increases from 100 to 125 when the price of Y increases from $6 to $7. The cross-price elasticity of demand is