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B ) 1 0 C ) 1 5 D ) 2 0 E ) none of the above Refer to Scenario 2 . 1 .

B)10
C)15
D)20
E) none of the above
Refer to Scenario 2.1. What is the equilibrium quantity of books sold?
A)25
B)50
C)75
D)100
E) none of the above
Refer to Scenario 2.1. If P=$15, which of the following is true?
A) There is a surplus equal to 30.
B) There is a shortage equal to 30.
C) There is a surplus, but it is impossible to determine how large.
D) There is a shortage, but it is impossible to determine how large
Refer to Scenario 2.1. If P=$15, which of the following is true?
A) Quantity supplied is greater than quantity demanded.
B) Quantity supplied is less than quantity demanded.
C) Quantity supplied equals quantity demanded.
D) There is a surplus.
Refer to Scenario 2.1. If P=$25, which of the following is true?
A) There is a surplus equal to 30.
B) There is a shortage equal to 30.
C) There is a shortage, but it is impossible to determine how large.
D) There is a surplus, but it is impossible to determine how large.
Indifference curves are convex to the origin because of:
A) transitivity of consumer preferences.
the assumption of a diminishing marginal rate of substitution.
the assumption that more is preferred to less.
D) the assumption of completeness.
E) none of the above
Bill currently uses his entire budget to purchase 5 cans of Pepsi and 3 hamburgers per week. The price of Pepsi is $ per can, the price of a hamburger is $2, Bill's marginal utility from Pepsi is 4, and his marginal utility from hamburgers 6. Bill could increase his utility by:
A) increasing Pepsi consumption and reducing hamburger consumption
B) increasing hamburger consumption and reducing Pepsi consumption.
C) maintaining his current consumption choices.
D) We do not have enough information to answer this question
An individual consumes only two goods, x and Y. Which of the following expressions represents the utility maximizing market basket?
A) MRSxy is at a maximum.
B)PxPy= money income
C)MRSxy= money income.
D)MRSxy=PxPy.
E) all of the above

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