11. The equation for the demand curve is P = 600 - 20QD and the supply curve equation is P = 280 + 20QS. What are the market equilibrium quantity (Q) and price (P)?

Select one:

a. Q=440; P=$8.

b. Q= 8; P=$440.

c. Q=400; P=$10.

d. Q=10; P=$400.

12. If a 12% increase in the price of grape juice increases the quantity of orange juice demanded by 8%, what is the cross-price elasticity of demand for orange juice with respect to the price of grape juice? Is the demand elastic or inelastic?

Select one:

a. 0.67 and inelastic.

b. 0.67 and elastic.

c. 1.50 and elastic.

d. 1.50 and inelastic.

13. In an 8-hour working day, Tom can produce 25 burgers or 25 pizzas, while Jerry can produce 50 burgers or 25 pizzas. Given the above, the opportunity cost of producing 1 pizza is:

Select one:

a. 1 burger for Tom and a burger for Jerry.

b. a burger for Tom and 1 burger for Jerry.

c. 2 burgers for Tom and 1 burger for Jerry.

d. 1 burger for Tom and 2 burgers for Jerry.

14. Suppose that the Australian government introduces a special sales tax on a product and both buyers and sellers share the tax. The price elasticity of the product is known to be -1.5. Which of the following is true?

Select one:

a. Buyers would pay more of the tax than sellers.

b. Buyers and sellers would share the tax burden equally.

c. Sellers would pay more of the tax than buyers.

d. Sellers would pay all the tax.

15. A characteristic NOT shared between monopoly and monopolistic competition is:

Select one:

a. Profit-maximising quantity occurs where marginal revenue (MR) equals marginal cost (MC).

b. Price is higher in monopoly than in perfect competition.

c. No close substitute good is available.

d. Firms demand curves are downward sloping.