11. Suppose the supply curve for bikes is given by Q = 100. The price elasticity of supply is

A) 100.

B) perfectly inelastic.

C) perfectly elastic.

D) Cannot be calculated from the information provided.

12. Which of the following pairs of goods listed below would most likely have preferences represented by convex indifference curves?

A) 5 cent piece and 10 cent piece B) shoes and shoe laces

C) rugby tickets and cricket tickets D) None of the above.

13. Suppose David has preferences for rugby games and cricket matches. If David's marginal rate of substitution of rugby games for cricket matches equals 2, then

A) he would give up two cricket matches to go to the next rugby game. B) he would give up two rugby games to go to the next cricket match. C) he will go to twice as many cricket matches as rugby games. D) he will go to twice as many rugby games as cricket matches.

14. Suppose David has preferences for rugby games (R) and cricket matches (C) and the following utility function over the two goods, U(R0.5,C0.25) = R C . What is David's marginal rate of substitution when his consumption bundle is two rugby games and six cricket matches.

A) -12. B) -1/6. C) -6. D) -1/12.

15. Suppose David consumes electric bikes (E) and pedal bikes (P) and faces the following budget constraint, E = 250 - 5P. If the price of pedal bikes increases by 2 and consumption of pedal bikes remains unchanged at 20, how will consumption of electric bikes change?

A) decrease by 10 B) decrease by 20 C) decrease by 40 D) decrease by 60